1. The appellants had received goods transport operators' service during the period 16-11-1997 to 1-6-1998. But they had not paid service tax, nor had they filed any return. The return was filed on 27-8-2003 within the period (six months from 14-5-2003, the date on which the Finance Bill 2003 received Presidential assent) prescribed under Section 71A of the Finance Act, 1994. By doing so, they came within the ambit of Section 71 of the Finance Act, 1994. Meanwhile, show-cause notice dated 5-8-2002 had been issued by the department demanding service tax for the above period with interest from the appellants and proposing penalty on them. In adjudication of this notice, the original authority, by order dated 18-9-2003, confirmed the demand of tax and appropriated the payment already made, towards such demand. The authority, however, dropped the proposal to levy interest on tax as also the proposal to impose penalty. This part of the order of the original authority was reviewed by the jurisdictional Commissioner under Section 84 of the Finance Act, 1994 and a penalty of Rs. 7,843/- was imposed on the assessee. The Commissioner also demanded interest on the tax amount. The present appeal is against the Commissioner's order.
2. After hearing both sides and considering their submissions, I note that the appellants are not challenging the demand of tax but they have a grievance against the demand of interest and penalty. Learned Consultant reiterates this grievance and submits that, on the facts of the case, the demand of interest and penalty cannot be sustained. This claim is opposed by learned SDR.3. It appears from the records that the return was filed within the period prescribed under Section 71A of the Finance Act, 1994. Cases in which service tax return had not been filed before the date on which Section 71A came into force by recipients of GTO service and C & F Agents' service for the aforesaid period were considered by the Hon'ble Supreme Court in the case of Gujarat Ambuja Cements Ltd. v. Union of India and the assessees, who had not paid service tax for the said period within the time limit prescribed under Section 71A ibid were given a final chance to pay up the tax dues within an extended period. Their Lordships also made it clear that such assessees paying tax within the time granted by the Court would not be liable to pay interest or penalty. This benefit is certainly available to the appellants in the present appeal inasmuch as they had filed return and paid tax for the above period within the time prescribed in the statute itself.
4. In the result, the appeal succeeds. The impugned order is set aside and the appeal is allowed.