9911796707
TMI Blog2020 (2) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the records. The appellant herein are registered with service tax department to provide business auxiliary services. They have been discharging service tax on these services. The appellant is a proprietary concern owned by Shri A. Narasinga Rao. He also owns another proprietary firm viz., SR Transporters who are also registered with the Central Excise department for providing Goods Transport Agency services (GTA). Both registrants are located in nearby plots in 159 & 162A, Industrial Estate, Pedagantyada in Visakhapatnam. During audit, the department verified the invoices and ledgers and other accounts of the appellant and came to the conclusion that the appellant is in fact rendering a consolidated service of both processing the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 76, 77 & 78 of the Finance Act, 1994. After following due process, the learned adjudicating authority, by the impugned order, has ordered recovery of service tax amounting to Rs. 42,11,213/- along with interest and imposed an equal amount of penalty under section 78 of the Finance Act, 1994. She also imposed penalty of Rs. 10,000/- under section 77 of the Finance Act, 1994 but did not impose any penalty under section 76 of the Finance Act, 1994. There is no departmental appeal against the order of the adjudicating authority in not imposing penalty under section 76 or confirming the demand lower than what was proposed in the show cause notice. Aggrieved by the impugned order the present appeal is filed by the appellant on the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment, temporary warehousing. For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In such a case, whether the intermediary or ancillary activities is to be treated as part of GTA service and the abatement should be extended to the charges for such intermediary or ancillary service? Clarification: GTA provides a service in relation to transportation of goods by road which is a single composite service. GTA also issues consignment note. The composite service may include various intermediate and ancillary services provided in relation to the principal service of the road transport of goods. Such intermediate and an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , such service would form part of GTA service and, therefore, the abatement of 75% would be available on it." 5. Learned counsel would submit that it is not in dispute that both the firms are separately registered by the department and have paying service tax and filing returns as required. Merely because both units are owned by the same individual the services do not get clubbed into a consolidated service. He would submit that as per the statement recorded during investigation itself, they do not undertake same processes for every client. For some clients they only undertake transportation and for some only processing work and for some they undertake both the activities. These activities are not undertaken by the same registrant but are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant herein and he has been rendering both the services, though not in every case to every client. Therefore, the confirmation of demand is sustainable. 8. We have considered the arguments on both sides and perused the records and find that the only allegation of the department is that both firms are owned by the same person and are located in nearby plots. It is undisputed that the two firms have been given separate registrations by the department for different activities. There is nothing on record to show that the department has declined to give registration to one of the units holding that both the units are the same and the services rendered by both firms amount to rendition of a single service requiring service tax to be paid acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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