2024 (9) TMI 1174 - AT - Service Tax

Entitlement for abatement of 70 % from the gross value for the purpose of paying service tax on ocean freight - confirmation of demand of deferential duty attributed to the abatement portion on the ground that the appellant have not fulfilled the condition for availing the exemption under N/N. 26/2012-ST dated 20.06.2012 (Serial No.10) - HELD THAT - In the present case the service tax demand was confirmed on the ocean freight for the transportation of vessel in respect of imported goods from abroad to Indian port. As per the Hon ble Gujarat High Court judgment in the MESSRS SAL STEEL LTD. 1 OTHER (S) VERSUS UNION OF INDIA 2019 (9) TMI 1315 - GUJARAT HIGH COURT the levy was itself held unconstitutional. However, before passing both the orders of the lower authorities the judgment was not delivered. Therefore in the change circumstances of law, the matter needs to be reconsidered by the adjudicating authority. The impugned order is set aside - appeal allowed by way of remand to the adjudicating authority to pass a fresh order.

Summary

The Appellate Tribunal CESTAT Ahmedabad considered whether the appellant is entitled to a 70% abatement for paying service tax on ocean freight. The appellant argued that the levy of service tax on ocean freight was held unconstitutional by the Gujarat High Court in a previous case. The Tribunal set aside the lower authorities' decision and remanded the case for fresh consideration in light of the Gujarat High Court judgment. (Case: MR. RAMESH NAIR vs. C L MAHAR)