9911796707
TMI Blog2024 (3) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... vice Tax Commissionerate. The appellant collected excess amount from their customers over and above the actual ocean freight paid to the shipping lines. They did not discharge Service Tax on the excess amount collected from the clients. The Department was of the view that the said amount is liable to Service Tax. The Show Cause Notice dated 25.02.2013 was issued to the appellant proposing to demand Service Tax on excess amount collected to the tune of Rs.85,035/-. After due process of law, the Original Authority confirmed the demand of Rs.85,035/- on excess ocean freight collected by the appellant during the period from April 2012 to September 2012 along with interest and imposed penalty under Section 76 and 77 of the Finance Act, 1994. Agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that ocean freight cannot be subject to levy of Service Tax. The Ld. Representative for the appellant prayed that the appeal may be allowed. 3. The Ld. Authorised Representative Shri N. Satyanarayanan appeared for the Department. The findings in the impugned order were reiterated. 4. Heard both sides. 5. The issue to be considered is whether the appellant is liable to pay Service Tax on excess amount collected towards the ocean freight. 6.1 On perusal of the Show Cause Notice as well as the order passed by the Original Authority, we are not able to find as to the category under which the Service Tax demand has been confirmed. In the Show Cause Notice, although it is alleged that the appellant has collected excess amount towards ocean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollected excess amount towards freight, the Show Cause Notice does not say as to which category of service the said amount would be liable to Service Tax. So also, it is not stated whether the amount is consideration for Steamer Agency Service. The Show Cause Notice does not propose to include the amount under particular category of service and demand the Service Tax under any category. The Adjudicating Authority has not made any finding as to whether the excess amount collected would be consideration for service. The Show Cause Notice is the foundation of the litigation. When the Show Cause is insufficient as to clarify the category of service, the demand cannot sustain and requires to be set aside. 7. In the result, the impugned order is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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