TMI Blog2016 (1) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. In this situation, if service tax is paid by the assessee, the assessee's services is an input service for the postal department and postal department is entitled for Cenvat credit, thus in our view the present case is of Revenue neutral as the postal department is entitled for CENVAT credit of the service tax if at all payable by the assessee. This Tribunal, time and again held that in case of revenue neutral the demand does not exist. In view of the various judgments, it is clear that if service tax is paid by the assessee, same shall be available as Cenvat credit to the postal department and to that extent net liability of service tax shall stand reduced while paying the service tax by the postal department. Therefore, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on the entire value of services being collected from the customers of postal department. During the said business, the assessee is acting as intermediary for collection of letters, affixing postal stamps for which he is getting commission from postal department on the turnover. In the adjudication, demand was confirmed holding that the assessee is independent service provider and the postal department is a service recipient and for the said services, the assessee is receiving service charges in the form of commission, therefore, their independent activity is liable for service tax. In the appeal by the assessee, Ld. Commissioner (Appeals) dropped the part of the demand on the ground of limitation as no suppression or misdeclaration or f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Service Tax law every individual who provides the services is liable to pay Service Tax irrespective of the service subsequently merged with other services and service tax is discharged in the hands of the service recipient. As regards Revenue's appeal, he submits that since assessee has not disclosed their activity to the department, it amounts to suppression of facts and therefore Ld. Commissioner (Appeals) has erred in dropping the demand on limitation. 6. We have carefully considered the submissions made by both sides. 7. Before going into the merit whether the services is taxable or otherwise and also on the limitation, we find that the fact is not under dispute that the services provided by the assessee is at the most cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and paid to the dealers. The impugned orders are therefore not sustainable. They are set aside to the extent they affirmed orders-in-original No.4/2006 and 16/2006 and these appeals are allowed. M/s COCHIN PORT TRUST Vs COMMISSIONER OF CENTRAL EXCISE, COCHIN 2011(21) STR 400 (Tri-Bang) 5. We have carefully perused the case records and considered the submissions made by both sides. 5.1 As regards royalty, we find that CPT received part of revenue earned by IGTPL as consideration for allowing IGTPL to operate the port whereas IGTPL rendered services taxable under port services and paid the tax due on the total revenue. We do not find 1/3 rd of that revenue received by CPT liable to tax under Port Services at the hands of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anpur Final Order No. 50337-50344 /2014 dated 29.1.2014 has done a detailed discussion in the manner and has held that inasmuch as during the relevant period, the practice of payment of service tax on the full value was the general practice being adopted, the separate confirmation of service tax against the sub-contractor would not be justified, though the Cenvat credit Rules, as rightly argued by learned Jt. CDR requires separate payment of service tax on separate activities, which service tax would be available as credit to the main contractor. Learned Jt.CDR relies on the Tribunal's decision in the case of Safe and Sure Marine Services Pvt. Ltd. vs. CST, Mumbai reported as [2012 (28) STR 30 (Tri-Mum)] laying down that it is the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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