2008 (2) TMI 200

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....-1.6.1998 but had not paid any service tax thereon under the Finance Act, 1994. They had not filed any service tax return either. The department issued a show-cause notice on 27.12.2000 for recovery of service tax of Rs. 1,26,663/- with interest, under Section 73 r/w Section 71A of the Finance Act for the above period. The original authority dropped the proceedings. The Commissioner in his revisional jurisdictional set aside the order of the original authority and demanded the above service tax from the assessee. Hence the present appeal of the assessee. 3. As rightly submitted by learned consultant for the assessee, the issue is already covered in their favour by the apex court's decision in Commissioner of Central Excise, Meerut Vs.....

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....eon under the Finance Act, 1994. Later on, they paid an amount of Rs. 2,36,037/- towards such tax on 13-11-2003. This payment was under protest. The Department issued a show cause notice dated 3-4-2004 for recovering the balance amount of tax. The demand was contested. The Asst. Commissioner of Central Excise vacated the protest of the assessee, confirmed demand of tax of only Rs. 2,36,037/- and dropped the rest of the demand. His order was revised by the Commissioner under Section 84 of the Finance Act, 1994 and the demand of tax of Rs. 29,07,276/- was also confirmed against the assessee for the period 16-11-97 to 2-6-98 under Section 73(1)(b) of the above Finance Act. Hence the present appeal. 3. Ld. Counsel for the appellants submits th....

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....ons who fell under Section 71A did not come within the purview of Section 73 and, therefore, SCN issued under Section 73 for recovery of Service tax from such persons were not maintainable. This view was upheld by the Supreme Court in CCE, Meerut v. L.H. Sugar Factories Ltd., 2006 (3) S.T.R. 715 (S.C.) = 2005 (187) E.L.T. 5 (S.C.). The SCN in the instant case was issued only on 3-4-2004 and the same was under Section 73 of the Finance Act, 1994. The amendment brought to the said Finance Act or the Rules framed thereunder did not have the effect of bringing assessees like the appellants within the fold of Section 73 as per the ruling of the Apex Court in L.H. Sugar Factories (supra). We have not found anything in the Apex Court's judgmen....