9911796707
TMI Blog2016 (6) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 28.01.2016. Through such letters, the service tax authorities are seeking to recover service tax of Rs. 5.37 crores (rounded off) from the petitioner. 2. Brief facts are as under. 3. The petitioner as Food Corporation engages agencies for handling food cargo for transportation and other related activities. FCI had engaged one Kailash Enterprise for handling of wheat cargo during the year 200-607. Case of the petitioner is that such service provided by Kailash Enterprise was exempt from payment of service tax, despite which, under mistaken belief, FCI was made to pay service tax of Rs. 5.37 crores which Kailash Enterprise recovered from FCI. However, Kailash Enterprise had not deposited such service tax with the service tax authorities. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ural produce or goods intended for could storage" was meant to cover two categories of items. (I) "agricultural Produce" (ii) " goods intended for cold storage" Therefore, I find the demand of Service Tax is not sustainable on the said cargo in view of the exemption notification No.10/2002. ST dated 01.08.2002. However, the fact that an amount of Rs. 5,36,90,043/- was recovered from FCI in the guise of Service Tax, same is liable to be recovered from them under Section 73A of the Act. Para 12(iii) of the SCN reads as under. "Notwithstanding the demand of Service Tax made herein at SI.No. (I) above, why the amount of Rs. 7,69,65,589/- collected by the Assessee from the clients towards Service Tax during the relevant period (viz. Oct. 2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y them and failed to declare the correct amount of taxable value received by them and failed to deposit the Service Tax charged and collected in the manner and within the time limit prescribed I, therefore, impose a penalty of Rs. 5000/- on the Notices under in terms of subsection (2) of section 77 of the said Act. Applicable late fee in terms of Rule 7C of the Serves Tax Rules, 1994 is required to be separately collected for late - filing of each of the periodical returns pertaining to the half yearly periods of April - 2007 Oct 2007 to March2008. April2008 to Spt.2008 to March2009. I, therefore, order for the recovery of the amount payable for delay in furnishing return at the rate specified in Rule 7C of Service Tax Rules, 1994." 4. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition and Kailash Enterprise never deposited such sum with the Revenue. In terms of section 73A of the Finance Act, 1944 therefore, Kailash Enterprise was required to deposit such sum with the service tax department. Section 73A reads as under: 73A. Service Tax collected from any person to be deposited with Central Government:" 1 Inserted (w.e.f. 18.04.2006) by s. 68 of the Finance Act, 2006 (21 of 2006) (1) Any person who is liable to pay service tax under the provisions of this Chapter or the rules made thereunder, and has collected any amount in excess of the service tax assessed or determined and paid on any taxable service under the provisions of this Chapter or the rules made there under from the recipient of taxable service in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5), such amount shall either be credited to the Consumer Welfare Fund referred to in section 12C of the Central Excise Act, 1944 or, as the case may be, refunded to the person who has borne the incidence of such amount, in accordance with the provisions of section 11B of the said Act and such person may make an application under that section in such cases within six months from the date of the public notice to be issued by the Central Excise Officer for the refund of such surplus amount. 7. Under sub section (1) of Section 73A, any person liable to pay service tax and who has collected any amount in excess of such service tax has to forthwith pay the amount to the credit of Central Government. Under sub section (2) of section 73A where any ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
