2021 (10) TMI 1289 - AT - Service Tax

Refund of service tax paid - it is claimed that levy of service tax on ocean freight itself has been held as ultra-vires - HELD THAT - The judgment of Gujarat High Court in the case of MESSRS SAL STEEL LTD. 1 OTHER (S) VERSUS UNION OF INDIA 2019 (9) TMI 1315 - GUJARAT HIGH COURT only after the proceedings concluded by the lower authority i.e. sanctioning authority. This judgment was challenged before the Hon ble Supreme Court by the Revenue but no stay was granted, since the judgment was not delivered before passing the adjudication order and by the Commissioner (Appeals). In the interest of justice, the matter needs to be reconsidered in the light of judgment of Hon ble Gujarat High Court in the case SAL Steel Limited - Appeal allowed by way of remand

Summary

Issues involved:
Refund of service tax paid on ocean freight.

Analysis:
The judgment delivered by the Appellate Tribunal CESTAT Ahmedabad dealt with the issue of refund of service tax paid on ocean freight. The appellant, represented by Shri Willingdon Christian, relied on a judgment of the Hon'ble Gujarat High Court in the case of SAL Steel Limited, where the levy of service tax on ocean freight was deemed ultra vires, making them eligible for a refund. On the other hand, Shri T.G. Rathod, representing the Revenue, argued that the appellant had not challenged the assessment of service tax payment, citing a judgment of the Hon'ble Supreme Court in the case of ITC Limited. The Tribunal noted that the judgment of the Gujarat High Court in the SAL Steel Limited case was issued after the proceedings at the lower authority level, and since no stay was granted by the Supreme Court when it was challenged, the matter needed to be reconsidered in the interest of justice. As a result, the appeal was allowed, and the case was remanded to the Adjudicating Authority for a fresh order, with all issues being kept open for further consideration.