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TMI Blog2016 (9) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the adjudicating authority. Even the other documents were not considered by the adjudicating authority - case remanded to adjudicating authority for consideration of all documents – appeal allowed. - ST/20514/2015 - A/30581/2016 - Dated:- 11-7-2016 - Ms. Sulekha Beevi, Member(Judicial) and Mr. Madhu Mohan Damodhar, Member(Technical) Ms. L.Maithili, Advocate for the Appellant Shri P.S. Reddy, AR for the Respondent ORDER Facts of the case as put forth by the appellant is that the appellant had entered into a 'Clearing and Forwarding Agency Agreement (C F Agency Agreement) for a period of 5 years for providing clearing and forwarding services to M/s Hindustan Unilever Limited( hereinafter referred to as M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services provided by the appellant as a CFA and was taxable under that category. The allegation in this regard is that the total services of the assessee of receiving stocking and holding the products consigned by HUL to the godown situated in Vijayawada and servicing the market requirement of the designated areas ie. carrying out the movement of goods from the C F Agent premises to redistribution Stockist of the principal, Inter Depot movement of goods etc. rendered by the assessee to HUL is part of clearing and forwarding Operations classifiable under Clearing and Forwarding Services and taxable under Section 65(105)(j) of the Finance Act, 1994. In this regard, it is further alleged that the activities undertaken in respect of transpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect to transactions with M/s HUL, a third issue was raised with respect to certain transactions with APSRTC, wherein service tax is sought to be demanded under rent-a-cab services . 3. The adjudicating authority confirmed demand of ₹ 4,18,40,983/- along with interest and imposed penalties. In view of the amended provisions to Section 35F, as made applicable to Service Tax, a mandatory pre-deposit of 7.5% of the demanded tax amount was made a pre-requisite for availing of the appellate remedy before Cestat. The appellant challenged the constitutional validity of mandatory pre-deposit before the Hon'ble Andhra Pradesh High Court by way of a Writ Petition in W P.No.3393 of 2015. The Hon'ble Andhra Pradesh High Court was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which M/S HUL is discharging Service Tax on reverse charge mechanism, there was no scope for the appellant to pay service tax thereon. Hence, as such the appellant has been discharging service tax strictly as per law, after following the prescribed procedure. 5. The adjudicating authority has disregarded the preliminary objection taken by the applicant that the very same taxable value on which service tax demand was proposed under C FA Services and Business Support Services had suffered tax at the hands of the recipient of services. Although the applicant had furnished a Chartered Accountant's certificate to establish that the same taxable value had in fact suffered service tax in the hands of M/s HUL under reverse charge mechani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. Since all facts are available with the department and even the show cause notice has relied upon the ST3 returns for raising the demand, the charge of willful suppression of facts with intent to evade payment of duty cannot be sustained. 6. On behalf of department, Shri. P.S. Reddy the learned AR submitted that the adjudicating authority has taken into consideration all the facts of the matter and passed a well reasoned and balanced order which does not require any modification. He also submitted that has excluded following heads in the assessable value computed for discharge of service taxability. - Secondary Freight (shipment) - Underload charges(shipment) - Secondary fixed PDP reimbursement (Shipment) - Misc. charges(S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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