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TMI Blog2006 (2) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... was challenged in the Supreme Court and a retrospective amendment was carried out to the Finance Act and the appellants were required to pay their service tax as recipient of services of the GTO. The appellants discharged the service tax liability on January 31, 2004 and February 1, 2004. Show-cause notice was issued to the appellants in November, 2004, directing them to show cause as to why penalty should not be imposed and interest should not recovered from them for depositing the service tax liability late. The appellants contested the show-cause notice and the adjudicating authority vide order-in-original dated June 14, 2005, imposed penalty of Rs. 1,72,192.80 and also directed them to pay interest as per the provisions of section 75 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts that the appellants are required to pay service tax and are also required to pay interest from May, 2000, when the Finance Act, 2000, got retrospectively amended. He relies upon the decision of the Tribunal in the case of BOC India Ltd. v. CCE [2004] 116 ECR 400; 173 ELT 140 (Tri-Kolkata) and also on the decision of the High Court of Andhra Pradesh in the case of Nava Bharat Ferro Alloy Ltd. v. UOI [2005] 1 VST 83; [2005] 185 ELT 236. He submits that since the appellants have not deposited service tax, within time, imposition of penalty on them is correct and there is no need to show any leniency. Considered the submissions made by both sides. It is not in dispute that the appellants have discharged their service tax liability without b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6) "assessee" means a person liable for collecting the service tax and includes-- (i) his agent; or (ii) in relation to services provided by a clearing and forwarding agent, every person who engages a clearing and forwarding agent and by whom remuneration or commission (by whatever name called) is paid for such services to the said agent; or (iii) in relation to services provided by a goods transport operator, every person who pays or is liable to pay the freight either himself or through his agent for the transportation of goods by road in a goods carriage;' . . . 117.. Validation of certain action taken under Service Tax Rules.-- Notwithstanding anything contained in any judgment, decree or order of any court, Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force." From the plain reading of the above retrospective amendments it can be concluded that these retrospective amendments sought to: (a) bring in the service receiver of goods transport operators under the category of service tax payer by amending the definition of "assessee". (b) validate any action taken during the relevant period of authorization in respect of services received from goods transport operators. The appellants' case before me will not get covered by the retrospective amendments as they had discharged the service tax lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd forwarding agent, every person who engages a clearing and forwarding agent and by whom remuneration or commission (by whatever name called) is paid for such services to the said agent for the period commencing on and from the 16th day of July, 1997, and ending with the 16th day of October, 1998; or (ii) in relation to services provided by goods transport operator, every person who pays or is liable to pay the freight either himself or through his agent for the transportation of goods by road in a goods carriage for the period commencing on and from the 16th day of November, 1997, and ending with the 2nd day of June, 1998, shall be deemed always to have been a person liable to pay service tax, for such services provided to him, to the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndment in the Finance Act, 2003, the receiver of the services from goods transport operators was also made liable to pay service tax. Since the calculation of service tax liability would have been a bone of contention, the Finance Act, 2003, sought to insert a new section 71A to make the receiver of services of goods transport operators to file returns. This insertion was necessitated as the provisions of sections 69 and 70 of the Finance Act, 1994, applied only to service providers. By inserting section 71A, the Finance Act, 2003, made the service receivers to file return to the authorities to ascertain the service tax liability. The said section 71A also granted time of six months from the date of assent of the Bill by the President. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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