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2024 (1) TMI 578 - CESTAT ALLAHABADSeeking refund of service tax wrongly paid on ocean freight under reverse charge mechanism - rejection of refund on the ground that since bill of entry was filed in the name of the Appellant, hence the Appellant is the service recipient - HELD THAT:- The constitutional validity of Notification No.15/2017-ST dated 13.04.2017 and Notification No.16/2017-ST dated 13.04.2017 making the importer as a person liable to pay service tax on services by way of transportation of goods by a vessel from a place outside India up to the custom station of clearance in India, even in case of C.I.F contracts, was challenged before Hon’ble Gujarat High Court in MESSRS SAL STEEL LTD. & 1 OTHER (S) VERSUS UNION OF INDIA [2019 (9) TMI 1315 - GUJARAT HIGH COURT]. The validity of Circular No.206/4/2017-ST dated 13.04.2017 was also challenged in the said writ petition, where it was held that The Notification Nos. 15/2017-ST and 16/2017-ST making Rule 2(1)(d)(EEC) and Rule 6(7CA) of the Service Tax Rules and inserting Explanation-V to reverse charge Notification No. 30/2012-ST is struck down as ultra vires Sections 64, 66B, 67 and 94 of the Finance Act, 1994; and consequently the proceedings initiated against the writ applicants by way of show cause notice and enquiries for collecting service tax from them as importers on sea transportation service in CIF contracts are hereby quashed Thus, the issue involved in the present case is no more res-integra and the Appellant cannot be fastened with any service tax liability on ocean freight. By respectfully following the dicta laid down in SAL Steel Ltd., the appeal filed by the Appellant is allowed.
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