2007 (4) TMI 723

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....a refund claim for an amount of Rs. 11,03,392 paid by them during the period from 17-10-1998 to 30-6-1999 as service users towards the services received by them from the clearing and forwarding agents for the said period. The contention of the respondents is that there is no tax liability on service users on C & F agents for the period subsequent to 16-10-1998 as per Finance Act, 2003. The Original Authority rejected the refund claim. The respondents appealed to the Commissioner (Appeals). The Commissioner (Appeals) relying on the decision of the Apex Court in the case of Laghu Udyog Bharati v. Union of India 1999 (112) ELT 365/[2006] 4 STT 322 held that the respondents who are users of the service provided by C & F agents are not liable to....

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....Smt. Rukmani Menon, learned Advocate appeared for the respondents and Shri K. Sambi Reddy, JDR appeared for the revenue. 4. The learned Counsel brought to our notice that the issue is covered by the decision of the CESTAT's Chennai Bench in the case of CCE, Tirunelvelli v. DCW Ltd. [2006] 5 STT 42 (Chennai - CESTAT) wherein it is held that the service tax liability on recipient of clearing and forwarding service is limited to the period from 16-7-1997 to 16-10-1998 in terms of section 116 of the Finance Act, 2000. It has further been held that when section 116 did not enable the revenue to collect service tax from a recipient for clearing and forwarding service received by him during July-August 1999, the revenue cannot rely on any of pr....