Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Tuticorin Alkali Chemicals and Fertilizers Ltd Versus Commissioner of Central Excise, Tirunelveli And (Vice-Versa)

2017 (10) TMI 557 - CESTAT CHENNAI

GTA Service - reverse charge mechanism - assessee had purchased salt, coal and lime from various places and paid transportation charges - Held that: - the entire adjudication needs to be revisited to confirm or otherwise the veracity of the submissions and contentions of the appellant. That would be in the interests of justice - on the aspect of calculation of service tax liability, we remand the matter back to the adjujdicating authority for denovo consideration. - Penalty - Held that: - t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

these appeals ST/236/2007, ST/237/2007, emanate from the same impugned order, they are taken up for common disposal. 2. The brief facts of the cases are that M/s. Tuticorin Alkali Chemicals and Fertilizers Ltd (hereinafter referred to as the assessee) are engaged in the manufacture of Soda Ash, Ammonium Chloride etc. They obtained service tax registration for payment of service tax on Goods Transport Agency (GTA) Services in the capacity of recipient of GTA Services. Assessee had purchased raw .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and also imposition of penalty under various provisions of law. In adjudication, vide the Impugned Order dated 18.7.2007, Commissioner confirmed the proposed tax liability along with interest and further imposed penalties of ₹ 1,75,000/- under Section 76 of the Finance Act, ₹ 1,000/- under Section 77 ibid and ₹ 83,10,029/- under Section 78 ibid. 3. Aggrieved, the assessee are before this forum in Appeal No.ST/237/2005. Department is also aggrieved with the impugned order to the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. Vishnu Priya, Ld. Advocate made oral and written submissions, which can be broadly summarized as under :- (i) The tax liability that has been confirmed against the appeals in respect of freight on salt, coal and lime procured by them are as follows :- Sl.No. Commodity Road freight/ (in Rs.) Rail freight (in Rs.) Amount (in Rs.) 1 Salt 50,34,333 Nil 50,34,333 2 Coal 19,92,410 12,74,046 32,66,456 3 Lime 9,240 Nil 9,240 Total 70,35,983 12,74,046 83,10,029 (ii) In respect of salt, it is contended .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the total tax liability in respect of salt will only be ₹ 12,58,584/- on road freight alone, since no GTA is payable on rail freight. Out of this total liability of ₹ 12,58,584/-, the assessee and also the salt vendor in some cases, have together discharged total tax liability of ₹ 9,71,323/-, interest of ₹ 1,03,532/-, totally amounting to ₹ 10,74,855/- is as follows :- Sl.No. TR6 challan reference and date Amount of tax (Including cess) (in Rs.) Interest (In Rs.) T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

act was awarded by the assessee to one M/s. Fossil Logistics P Ltd to undertake obligation of stevedoring, clearing and forwarding services and transport. Essential nature of the contract is of clearing and forwarding operations and hence liability to discharge service tax liability was only on M/s. Fossil Logistics P Ltd as the service provider of the composite contract. (iv) Further, out of the demand of ₹ 32,66,456/- pertaining to GTA on coal transportation, a sum of ₹ 12,74,046/- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y limitations, after audit was conducted at the premises of the assessee on 4.7.2005 and 30.1.2006. However, Show Cause Notice issued only on 21.2.2007. Hence extended period of limitation cannot be invoked. (vii) With extended period of limitation cannot be invoked under penalty under Section 78 can also be imposed. So also penalty under Section 76 and 77 are have also been imposed erroneously. Since the bonafides are clearly in favour of assessee. For this reason also, appellant of the Appeal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

them. These facts have emerged only after audit of the assessee was conducted by the department. 5.3 Ld. AR reiterated the Grounds of Appeal in department Appeal ST/236/2007 seeking imposition of penalty under Section 76 as per the provisions there in force, which would result in higher penalty under that section. 6. Heard both sides and have gone through the facts. 7. The assessee does not dispute the fact of having procured / purchased salt, coal and lime. They however contend that in respect .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1,03,532/-. The remaining tax liability on coal and lime will not arise, according to the appellant, since they had entered into contract for supply of the same with Clearing and Forwarding Agencies and accordingly tax liability on GTA would not arise. 8. In light of the above submissions, we are of the considered opinion, that the entire adjudication needs to be revisited to confirm or otherwise the veracity of the submissions and contentions of the appellant. That would be in the interests of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version