2019 (2) TMI 480 - AT - Service Tax

GTA Service - freight charges - charges paid for each consignment less than threshold limit - failure to discharge service tax - Held that - his Tribunal in the appellant s own case for the earlier period BHIMA SAHAKARI KARKHANA LTD VERSUS CCE, PUNE-III 2015 (10) TMI 627 - CESTAT MUMBAI considered the issue of taxability of the inward freight charges paid when the amount paid for transportation in each consignment was less than ₹ 750/- and for a single carriage is less than ₹ 750/- - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against Order-in-Appeal No. PUN-SVTAX-000-APP-0010-14-15 dated 23.01.2015
- Taxability of inward freight charges under GTA services
- Interpretation of Notification No. 33/2004-ST dated 03.12.2004
- Precedent set by Tribunal in Bhima SSK Ltd. case

Analysis:

1. The appeal was filed against Order-in-Appeal No. PUN-SVTAX-000-APP-0010-14-15 dated 23.01.2015 passed by the Commissioner of Central Excise & Service Tax (Appeals), Pune. The appellant, engaged in manufacturing excisable goods and providing taxable services, was alleged to have failed to discharge Service Tax on freight charges under the taxable category of GTA services. A show-cause notice was issued for recovery of Service Tax amounting to ?14,33,925/- along with interest and penalty. The demand was confirmed with interest and penalty after adjudication, leading the appellant to file an appeal before the Commissioner (Appeals), which was subsequently rejected.

2. The appellant contended that during the relevant period, they had paid inward freight for transportation services, with charges for each consignment being less than ?750/- and the freight amount paid for single goods carriage being less than ?1500/-, falling under the purview of Notification No. 33/2004-ST dated 03.12.2004. The appellant referred to a previous Tribunal decision in Bhima SSK Ltd. Vs. Commissioner of Central Excise, Pune-III, where a similar issue was decided in their favor. The Tribunal's order in the appellant's favor was followed subsequently, leading to the setting aside of the impugned order and allowing the appeal with consequential relief, if any, as per the law.

3. The Tribunal noted that in the appellant's previous case for the earlier period, the issue of taxability of inward freight charges paid when the amount for transportation in each consignment was less than ?750/- and for a single carriage was less than ?750/- had been decided in their favor. The Tribunal's decision in the earlier case was followed in the present matter, leading to the setting aside of the impugned order and allowing the appeal based on the precedent set by the Tribunal in the Bhima SSK Ltd. case.

4. In conclusion, the Tribunal, consisting of Dr. D.M. Misra and Mr. P Anjani Kumar, allowed the appeal filed against the Order-in-Appeal dated 23.01.2015, based on the interpretation of Notification No. 33/2004-ST and the precedent set by the Tribunal in a similar case. The appellant's argument regarding the taxability of inward freight charges under GTA services was upheld, leading to the setting aside of the impugned order and granting consequential relief as per the law.