ORDER
P.G. Chacko, Member (J)
1. The appellants are manufacturers of Polyester Cotton Yam. They had availed the services of certain goods transport operators during the period 16-11-1997 to 1-6-1998. The department raised on them a demand of service tax on such services for the said period. The demand (amounting to Rs. 89,788/-) was confirmed by the original authority. The appeal preferred to the first appellate authority did not succeed. Hence the present appeal.
2. Ld. Counsel for the appellants submits that a person receiving a taxable service of any goods transport operator is not liable to pay service tax as held by this Tribunal in L.H. Sugar Factories Ltd. v. Commissioner of Central Excise, Meerut reported in 2004 (165) E.L.T. 161 (Tri. – Del.). Ld. Counsel has also relied on the decision of this Bench in Bhagwan Das Metals Ltd. v. Commissioner of Central Excise, Chennai reported in 2003 (107) ECR 161 (Tribunal). I have heard the DR also.
3. The short question arising in this case already stands settled by the Tribunal’s decision in L.H. Sugar Factories Ltd. (supra), relying on a judgment of the Supreme Court [1999 (112) E.L.T. 365 (S.C.)], wherein it was held that a person receiving taxable service of goods transport operator was not liable to pay service tax under Section 73 of the Finance Act, 1994.
Following the cited case law. I set aside the demand of service tax raised on the appellants. The appeal stands allowed.