TMI Blog2017 (4) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by these companies and rightly paid by the appellant. In that case the appellants are eligible for credit, off the service tax paid on transportation of goods by rail. The services received by the appellant for repair/maintenance of SAP software is a taxable service. The appellant is therefore eligible for credit. CENVAT credit - demurrage charges - Held that: - The invoices establish that the said service tax was paid in respect of demurrage charges incurred by them for the goods imported, which was used by them in the factory. Therefore the credit has been wrongly denied. Appeal allowed - decided in favor of assessee. - E/20554/2015 - A/30361/2017 - Dated:- 7-2-2017 - Ms. Sulekha Beevi, C.S., Member (Judicial) Sh. Rah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sportation of goods by rail services. The credit availed on this service is denied for the reason that rail freight was brought under service tax net only with effect from 01.09.2009. Further, that Notification No. 33/2009-ST dated 01.09.2009 exempts the said service from levy of service tax from 01.09.2009 onwards. That the said notification was subsequently withdrawn and finally the service became taxable with effect from 01.10.2012 only. That the authorities below observed that appellant could avail credit of service tax only from 01.10.2010 onwards and not prior to this date. Therefore the credit on rail freight for the period prior to 01.10.2012 was denied. 4. He submitted that the said notifications are applicable in the cases wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Boxtran) and M/s Container Corporation of India Ltd. That both these companies are engaged in providing the service of transportation of goods in containers by rail from one place to another by using the service of trains operated by Indian Railways. These companies are privately owned and managed entities. These companies have collected the service tax from the appellant for providing the service of transportation of goods by rail and therefore appellant has rightly availed the credit of the service tax paid for such services. 7. The credit availed on ITSS to the tune of ₹ 25,669/- has been disallowed for the reason that the said services have become taxable only with effect from 16.05.2008. The Ld. Consultant adverted to the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings in the impugned order. 10. The Ld. Consultant has explained in detail with regard to the taxable nature of services of transport of goods by rail. As rightly pointed out by him with effect from 01.05.2006 the transportation of goods by rail service was brought into service tax net and it included the services provided by any other person other than Government Railways. The definition underwent a change with effect from 01.09.2009 and read as Taxable service means any service provided or to be provided to any person by any other person, in relation to transportation of goods by rail in any manner. 11. The services thus became taxable even if they are provided by Government Railways. Pursuant to this amendment, Notification No. 33 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore the service tax has been rightly collected by these companies and rightly paid by the appellant. In that case the appellants are eligible for credit, off the service tax paid on transportation of goods by rail. 12. With regard to the disallowance of credit on Information Technology Software Services, the clarification in Circular No. 96/7/2007-ST is worth reproducing and reads as under: Services provided by any person to a customer in relation to management, maintenance or repair is liable to service tax [section 65(105)(zzg)]. Management, maintenance or repair includes maintenance or repair of any goods, excluding motor vehicle 9section 65(64)]. Whether maintenance or repair of software is liable to service tax? Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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