2020 (2) TMI 865 - CESTAT HYDERABAD - Service Tax

Head Note / Extract:
Levy of Service Tax - activity of transportation of pipes by road from their factory to site - reverse charge mechanism - HELD THAT:- It is no doubt that the appellant is executing works contract but during their activity, they are receiving services of transportation and in terms of Rule 2(1)(d)(v) of Service Tax Rules, they are required to pay service tax being a service recipient of transportation under reverse charge mechanism. Therefore, the appellants are liable to pay service tax along with interest. Penalty - HELD THAT:- Considering the facts of the case that the appellant is entitled to avail CENVAT Credit thereon, therefore, by invoking Section 80 of the Finance Act, 1994, the penalty imposed on the appellant is set aside - appellant is at liberty to avail CENVAT Credit of service tax paid being service recipient on the transportation service. Appeal disposed off.