TMI Blog2017 (5) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... uring, the question of rendering of service by the supplier under the category of STGU rentals, goes into the cost of manufacturing, on which duty is discharged. The containers which are transporting helium gas from the supplier situated abroad to the appellant herein are in the effective control and possession of the appellant till the helium gas is unloaded in equally specialized containers and the empty containers are re-exported to the foreign supplier. The question of revenue neutrality would arise in this case as if appellant discharges the service tax under STGU under reverse charge mechanism, is undisputedly consuming the said services for supply of raw materials / inputs which are for manufacturing of repacked gas and cleared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration. 3. It appeared that the above activity fell within the ambit of the taxable services i.e. service provided in relation to to any person, by any other person in relation to supply of tangible goods, without transferring right of possession and effective control of said tangible goods as defined in Section 65 (105) (zzz) of the Finance Act, 1994 introduced in Budget 2008-09 and made taxable with effect from 16.5.2008. As per Section 66A of the Act where the service is provided by any person who has his address outside India, the recipient of the service shall be treated as provider of the service and accordingly the said recipient becomes the person liable to pay service tax. In the instant case it appeared that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed the demands raised alongwith interest and imposed penalties. Aggrieved by the said order, an appeal was preferred before first appellate authority. The first appellate authority also concurred with the views of the adjudicating authority and upheld the order with only modification to the extent that the demand of service tax needs to be re-determined in accordance with the Rule 3 of Taxation of Services (Provided from outside India and Received in India) Rule, 2006 as per the direction given in paragraph 20 of the impugned order. The first appellate authority upheld the services to be falling under the category of STGU. 5. Learned Counsel would take us though the entire records and submit that there is no service provided by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad with Section 2(24) of the Maharashtra Value Added Tax Act, 2002, hence no service tax can be demanded on the said transaction is the law which has been decided by this Tribunal in the case of Kinetic Communications Ltd. - 2017-TIOL-762-CESTAT-Mum, Petronet LNG Ltd. - 2016 (46) STR 513, Meru Cab Co. Ltd. - 2016 (41) STR 444. It is his submission that the impugned order may be set aside and finally he would submit that assuming but not accepting the tax liability arises, the entire exercise is revenue neutral, as the tax paid is on services is in respect of manufacturing activity; in the present case, Helium Gas is the input and the very same Gas after repacking is sold by the appellant. For this proposition he relies upon the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into smaller packs and considering the same as the activity of manufacturing, the question of rendering of service by the supplier under the category of STGU rentals, goes into the cost of manufacturing, on which duty is discharged. 7.3 Thirdly, the question of revenue neutrality would arise in this case as if appellant discharges the service tax under STGU under reverse charge mechanism, is undisputedly consuming the said services for supply of raw materials / inputs which are for manufacturing of repacked gas and cleared by discharging central excise duty; accordingly tax paid under service tax would be available as credit to the appellant hence no necessity arises for any tax avoidance. We find a similar issue has been decided by this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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