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2019 (3) TMI 41 - CESTAT MUMBAILevy of service tax - dredging services provided to various contractors - Held that:- The SCN is bereft of the details of the various recipients to whom service was rendered but claimed to be excluded from the tax liability. Undoubtedly, the service rendered to M/s Hindustan Construction Company has, after detailed examination of the facts, been found to be inconsistent with the definition, and the intended object of taxation, of ‘dredging services.’ Likewise, the service rendered to M/s ABG Shipyard is also not in question. It would, therefore, appear that the breakup of the dues in the present appeal is a discovery attributable to the response to the show cause notice in which the details of contracts entered into appear to have been offered up as justification for non-payment of the taxes. As far as the service rendered to M/s Sri Pathy Assoceates is concerned, the facts are clear enough. The work was undertaken as part of the ‘tsunami emergency’ funded by Asian Development Bank and executed on ‘work orders’ issued by Tamil Nadu Maritime Board. The claim of the notice, and the respondent herein, is that the final recipient of the service, Asian Development Bank, is a privileged person excluded from the burden of tax under various international treaties as well as specific legislation of Parliament - We are unable to ascertain whether the exclusion claimed by the respondent during the adjudication proceedings is their entitlement. However, it was the bounden obligation of the adjudicating authority to consider the submission and give a finding thereof. This, he has patently failed to do. The impugned order set aside to the extent that the proceedings were dropped against the respondent in relation to the services rendered to M/s Sri Pathy Associates - matter remanded back to the original authority for fresh decision after hearing submissions made by the respondent - appeal allowed by way of remand.
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