2017 (11) TMI 1170 - AT - Central Excise

GTA services - Freight charges - reverse charge mechanism - N/N. 35/2004-ST dt. 31.12.2004 - Held that - the documents now submitted before the Tribunal to establish the link between the Service Tax deposited by service provider and the appellant were not submitted before the adjudicating authority and the same require to be examined in the first instance by the adjudicating authority - It would therefore be in the interest of justice that these documents which have been submitted before the Tribunal are produced before the Ld. adjudicating authority, who will examine them and decide the case afresh - appeal allowed by way of remand.

Summary

Issues:
Appeal against impugned order regarding liability to pay Service Tax on freight charges.

Analysis:
The appellants, engaged in manufacturing Insoluble Sulphur, availed Cenvat Credit for inputs, capital goods, and Service Tax. The Revenue alleged liability under Section 2(1)(d)(v) of the Service Tax Rules, 1994, and Notification No. 35/2004-ST for not paying Service Tax on freight charges for material procurement and goods dispatch. Show cause notices were issued, resulting in demands of &8377; 67,45,203/- and &8377; 81,35,404/- with penalties. The appellants contended that they provided ST-3 Returns, GAR-7 Challans, and invoices to the adjudicating authority, but the authority found the documents insufficient to establish the link between Service Tax paid and services received. The Commissioner confirmed the demand due to the absence of crucial documents, leading to the appeal.

The Tribunal noted that documents crucial to proving the link between Service Tax payment and services received were not submitted before the adjudicating authority, necessitating examination. The Tribunal directed the submission of these documents before the adjudicating authority for a fresh decision. The matter was remanded for de novo adjudication, ensuring the appellants' fair opportunity to present their case. The appeal was disposed of by way of remand, emphasizing the need for a thorough examination of the relevant documents.

This judgment highlights the importance of providing complete and relevant documentation to establish the nexus between Service Tax payment and services received. It underscores the procedural fairness in remanding the matter for fresh adjudication to ensure a comprehensive review based on all pertinent evidence. The decision serves as a reminder for appellants to diligently present all necessary documents before the adjudicating authority to support their claims and defenses effectively.