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2016 (4) TMI 498 - CESTAT MUMBAI

2016 (4) TMI 498 - CESTAT MUMBAI - 2016 (43) S.T.R. 545 (Tri. - Mumbai) - Demand - Transport coordination Activity - Arrangement of entire transportation, dispatching of goods and supervising the loading and unloading of the goods - Appellant contended that this activity is covered under “Business Support Services” from 1st May, 2006 - Held that:- as per definition of the “Business Support Services” under section 65, it is found that managing distribution and logistics was covered under the said .....

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of said goods and collecting them from said stockist - Held that:- this activity of the appellant, would fall under the category of Business Auxiliary Services under promotion or marketing or sale of goods produced or provided by or belonging to the client. Therefore, the service tax liability under this head is correctly confirmed by the adjudicating authority. The service tax liability along with interest is upheld. - Demand for January 2005 to March 2006 - Goods Transport Agency Services .....

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mit of service tax liability, the matter is remitted back to adjudicating authority. - Interest - Held that:- Interest liability also arises on the appellant in respect of the service tax liability upheld - Imposition of penalties - Section 76, 77 & 78 of the Finance Act, 1994 - Held that:- except for penalty under section 76 ibid, penalties under other sections are unwanted in as much, by invoking the provisions of section 80. They may have had justifiable reasons for not paying the ser .....

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s appeal is filed against Order-in-Original No. 19/KLG/Th-II/2010 dated 29/06/2010. 2. The relevant facts that arise for consideration are the appellant herein by an agreement with Saurashtra Cement Ltd., during the period 2003-2006 rendered services to Saurashtra Cement Ltd. in respect of various activities like transport, coordination services, organizing sales and Goods Transport Agency Services. Lower authorities were of the view that transport coordination services and organizing of sales i .....

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ucks as per requirement of the company for dispatch of goods, supervising, loading, unloading at points etc. He would submit that this activity is now covered by a separate entry under the category of Business Support Services and is taxable from 1.5.2006. He would rely upon the decision of the tribunal in the case of Canara Motors 2011(21)STR-407. As regards organizing of the sales, he would submit that entire sales function was out sourced to the appellant and the entire activity again would g .....

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d submit that for the period in question in case of goods transport agency i.e. January, 2005 to March, 2006, the show cause notice considers a figure which is highly in flated not matching as per the schedule to balance sheet. He would draw our attention to annexure C to show cause notice at page no. 62 and the schedule annexed to profit and loss account at page no. 43. 4. Learned departmental representative reiterates the findings of the lower authorities and submits that the service tax liabi .....

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the loading and unloading of the goods. We find strong force in the contentions raised by the learned counsel that this activity of the appellant is covered under Business Support Services from 1st May, 2006. As per definition of the Business Support Services under section 65, we find that managing distribution and logistics was covered under the said category as one of the goods on which service tax liability arises under Business Support Services . The said services came to be taxed from 1.5. .....

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As regards the demand under Business Auxiliary Services for organizing sales we find from the contract that the appellant has indeed organized for the collection of order from various stockist, distribution of said goods and collecting them from said stockist. This activity of the appellant, would fall under the category of Business Auxiliary Services under promotion or marketing or sale of goods produced or provided by or belonging to the client. We have no hesitation to hold that the servi .....

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