2023 (3) TMI 1400 - AT - Service Tax

Levy of Service Tax - Ocean Freight - HELD THAT - The issue whether Ocean Freight/ Sea Transportation service is liable to service tax or otherwise has been decided by jurisdictional High Court of Gujarat in the case of SAL Steel Limited 2019 (9) TMI 1315 - GUJARAT HIGH COURT . As regards the Revenue s appeal pending before the Hon ble Supreme Court against the aforesaid decision, there is no stay against the said High Court judgment. In view of this position, there are no infirmity in the impugned order which was passed relying on the jurisdictional High Court judgment in the case of SAL Steel Limited. Following the Hon ble Gujarat High Court decision in the case of SAL Steel Limited, the impugned order is upheld and the Revenue s appeal is dismissed.

Summary

Issues involved:
Whether the appellant is liable to pay service tax on the service on Ocean Freight or otherwise.

Comprehensive details of the judgment:

Issue 1 - Liability of service tax on Ocean Freight service:
The issue revolved around the liability of the appellant to pay service tax on the service related to Ocean Freight. The learned Consultant for the respondent pointed out that the learned Commissioner (Appeals) had allowed the appeal of the respondent based on the judicial discipline of the Hon'ble Gujarat High Court in the case of SAL Steel Limited. He argued that there was no infirmity in the Order-in-Appeal and that the Revenue's appeal was not maintainable. It was highlighted that there was no stay against the High Court order, and reference was made to the Supreme Court decision in the case of Union of India vs. Mohit Minerals Pvt. Limited. The Tribunal noted that the issue had already been decided by the jurisdictional High Court of Gujarat in the case of SAL Steel Limited. Despite the Revenue's appeal pending before the Supreme Court, as there was no stay against the High Court judgment, the impugned order was upheld, and the Revenue's appeal was dismissed. The Tribunal also disposed of the cross objection in this regard.

This judgment clarifies the applicability of service tax on Ocean Freight services based on the precedent set by the Hon'ble Gujarat High Court in the case of SAL Steel Limited. The decision emphasizes the importance of judicial discipline and adherence to established legal principles in tax matters. The reference to relevant legal precedents, such as the Supreme Court decision in Union of India vs. Mohit Minerals Pvt. Limited, further strengthens the Tribunal's ruling in this case.