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2024 (2) TMI 909 - CESTAT ALLAHABADValuation - Composite services - GTA Services on reverse charge basis - non-inclusion of various expenses in the taxable value - non-payment of service tax in respect of the amounts shown under the category of “Legal and Professional Charges” - levy of penalties. GTA Services - HELD THAT:- It appears that the authorities below have totally misunderstood the scheme of taxation on GTA under RCM scheme. Admittedly appellant is paying the service tax on the value of GTA Service as per consignment note/ bilty/ invoices of the GTA service provider on RCM basis. They are receiving certain other services from different service provider which they have put under the category of Loading and Unloading Charges, Pole shifting and stacking services. When the services are received from two different sources how can the same been clubbed under the category of GTA services as composite service. The entire case of the revenue is based creating a composite service of GTA by including these charges while determining the taxable value. Appellant is not providing GTA service to their customers PVVNL, but are manufacturing and selling the PCC Poles to their customers, which they deliver to their customer at the location specified by the customer. It is not even the case of the revenue that the GTA was providing the services categorized under category of “loading and unloading charges” and pole shifting and stacking charges”. It is also not the case of revenue that the charges in respect of these service received by the appellant were paid to GTA. Not even a single invoice to this effect has been produced or relied upon by the revenue in entire proceedings - there are no merits in this demand. Professional and Legal Services - HELD THAT:- There are no merits in respect of the demand made by the revenue on the expenditure incurred by the appellant which they have categorized under the category of “Professional and Legal charges”, which in fact are not paid to advocate or the firms of advocate. Along with the appeal appellant have furnished the vouchers of payment, ledger accounts in respect of these expenses, which substantiate their claim that these expenditures were made for the purchase of stamp papers, for TDS return filing, cost of court expenses/ fees etc. The ledgers of these expenditure were also produced before the lower authorities, and Commissioner (Appeal) has in the impugned order referred to some of the entries made in these ledgers - this demand also cannot be upheld. There are no merits in these two demands and the impugned order upheld to the extent of tax deposited by the appellant along with interest during the course of investigation (Rs 3181/- + Rs 573/-). This amount had been deposited by the appellant even prior to issuance of the SCN. As the amount is meager and has been deposited even prior to issuance of SCN, the penalty under Section 78 which has been imposed against this amount, cannot be upheld. All other penalties which have been imposed in terms of Section 77 (1) (a), 77 (2) and 78 also cannot be upheld as the demand itself has no merits. Appeal allowed.
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