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2021 (12) TMI 526 - HC - Service TaxInterpretation of statute - scope of Support Services of Business or Commerce - Applicability of 15/2006-ST dated 24th April, 2006 effective from 1st May, 2006 or the amendment to the Finance Act, 1994 with effect from 16th May, 2008 - whether the adjudicating authority was right in trying to import the fact of the definition which was inserted with effect from 2008 – 09 in sub-clause (zzzzj) in clause 105 of section 65 of the Act which, admittedly, came into effect only from 16th May, 2008? HELD THAT:- The said sub-clause has newly been inserted in the statute. The settled legal interpretation which has been given by the Hon’ble Supreme Court in several decisions when amendment brought about to a statute by insertion of a new definition or a clause, such insertion will always be prospective in nature. In this regard, guidance provided by the decision of the Hon’ble Supreme Court in BALAJI ENTERPRISES VERSUS COLLECTOR OF CENTRAL EXCISE, MADRAS [1997 (5) TMI 108 - SUPREME COURT]. In the said decision the Court noted that ‘waste and scrap’ could not be brought to tax as aluminium in crude form as ‘waste and scrap’ was already included in item no.27(A) of the Tariff and if that is so there would not have been any need for making the entry (aa) and the amendment left sub-item (A) of item 27 untouched. Thus, it was held that the sub-item (aa) was not clarificatory of sub-item (A) of item 27 and, therefore, it cannot be held to be retrospective. Thus, this aspect was rightly noted by the Tribunal. The Tribunal which is the last fact finding authority in the hierarchy of authorities under the provisions of the Act had examined the facts and concluded that the nature of activity cannot be construed within the ambit of service tax. Thus, there is no error in the order passed by the Tribunal. The appeal filed by the Revenue is dismissed and the substantial questions of law are answered against the Revenue.
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