TaxTMI 
TaxTMI 
2024 (11) TMI 1285
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....ervice, renting of immovable service etc. During the scrutiny of the trial balance/ledgers of the appellant for the year 2016-17 and 2017-18 (upto June 2017), the department observed that the appellant has shown to have received the freight insurance income of Rs.64,91,38,744/- in the year 2016-17 and Rs.13,86,74,606/- for the year 2017-18. The appellant informed that those amounts have been received for providing transportation facility to various clients under a contract entered into with them. On further perusal of their records, department also observed that an amount of Rs.49,05,43,655/- has also been received by the appellant on account of carriage outward inland sales and Rs.83738742/- for the year 2017-18. The said amount was inform....
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....uipment FOR (ii) Contract for transportation of ordered equipment from BHEL works to project site including transit insurance on lump sum basis. (iii) Contract for site erection, commissioning and trial run. It is mentioned that vis-à-vis first contract the same is not the subject matter of service tax liability. With respect to 3rd contract, appellant has already paid the service tax. It is only the amount received for facilitating freight and insurance which is in dispute. Ld. Counsel submitted that the appellant not being Goods Transport Agency (GTA) is transporting goods by road. Though partially the appellant has employed GTAs for the purpose, but in those cases the appellant has discharged the service tax liability under R....
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....the appeal is prayed to be allowed. 5. While rebutting these submissions, ld. DR has mentioned that the appellants have wrongly claimed the amount received by them towards facilitation of freight and insurance as an amount received towards the service mentioned under negative list. As per the contracts executed by the appellants, the appellant has made provision for transportation including services of Port clearance and Port charges, insurance, delivery at site, receipts, unloading, handling, storage and implant transportation at site to their clients for consideration as a facilitator to provide services. Therefore the services provided by them are classifiable under taxable services defined in section 65 B (44) of Finance Act, 1994. Wit....
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....serve that with effect from 1st July, 2012 the concept of nomenclature of services has been done away and every activity has been made taxable except those which are mentioned in section 66D of the Finance Act (Amendment Act of 2012). The period in question is post said amendment. Hence in light of the above facts section 66D is perused. We observe that sub-clause (p) of Section 66 D records the services by way of transportation of goods by road except the services of : (i) A Goods Transport Agency (ii) A Courier Agency. Since admittedly the appellant is neither the GTA, nor the Courier agency hence, the activity of transportation of goods by road by them is well covered under the aforesaid provision. The amount in question is an amount ....
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....y been denied to the appellant. 9. To appreciate the eligibility of Cenvat vis-a-vis the said said services we have perused the definition of input services in Rule 2(l) of CCR, 2004. The said definition has two parts one has inclusive clause and other has the exclusion clause . Meaning of "Includes" The inclusive part of the definition cover input services used ' in relation to' various activities. Definition are 'inclusive' or 'exhaustive'. If the definition use the world 'means' it means that its restrictive and exhaustive. However if the word 'includes' is used in the definition it means that it is not exhaustive but inclusive. [CCE v. Bakelite Hylam reported as (1998) 3 SCR 631 (SC)], Meaning 'in relation to' The word in rel....