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2020 (3) TMI 914 - AT - Service TaxNon-payment of service tax - Water supply / sale to customers in the port - Renting of immovable property - Transport of goods by road - demand of service tax alongwith interest and penalties - excessive adjustment of service tax - extended period of limitation. Water supply / sale to customers in the port - HELD THAT:- It is evident from the records of the case as well as the submissions of the Ld. Counsel for the appellant that they had purchased water and sold it to ships at a higher price. Thus, this is in our considered view, a case of purchase and sale of goods. Sale of goods is a taxable event for Sales Tax or VAT levied by the State Government. It appears from the records, that the appellant had reported the sales in their VAT returns to the State Government claiming an exemption from VAT available on sale of water. The availability of the exemption for sale of water is in dispute with the VAT department. There is no dispute with the State Government that the transaction is one of sale of water. Sale is not a taxable event to levy service tax. It would have been a different case if they had not bought or sold water but had only rendered some service in connection with the supply of water. For instance, if the users had purchased the water from someone else and if the appellant had only pumped or transported the water, etc., it would have definitely qualified as a service and if the service is rendered within the port, it would be exigible to Service Tax as Port Service. Selling goods on their on account to customers does not qualify as a service or else, every merchant in the country should be held to be rendering a service. Thus, sale of water is not exigible to Service Tax. Renting of immovable property service - HELD THAT:- A plain reading of the show cause notice in this case itself shows that the appellant have received amounts as advances for construction of a terminal for bunkering. There is no evidence that they have collected any rent towards bunkers or any other immovable property. If indeed, they have received any amounts for renting immovable property, it is not reflected in the show cause notice. Merely because the appellant has received some amounts from their customers they do not have to automatically pay service tax unless such amounts are relatable to rendition of a taxable service. GTA service - HELD THAT:- Learned Counsel concedes the demands GTA services and confirms that the tax has already been paid along with interest. Alleged excess adjustment of service tax - HELD THAT:- All the documents presented by them have not been considered by the Learned Commissioner in deciding this matter and we are of the opinion that the Commissioner should be given an opportunity to examine them and pass the reasoned order after following principles of natural justice as far as this demand is concerned. Demand of Interest - HELD THAT:- As the demands are set aside except on the GTA services on which the interest has already been paid along with the demand no further amounts need to be paid by way of interest. Penalties - HELD THAT:- As majority of the demands have already been set aside, it is a fit case to invoke Section 80 and all the penalties imposed upon the appellant are set aside. Appeal disposed off.
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