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TMI Blog2019 (3) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax paid by the appellant alongwith the freight are on record. In addition, there have been the certificates of three of these transporters acknowledging the liability qua the GTA services to have been discharged by them - the findings of adjudicating authority that the documents are insufficient to prove that the invoices were inclusive of service tax and liability thereof stands discharged though by the service provider are apparently false. Whether the payment made against the statutory provision of rule 2 (1) (d) of service tax Rules is still acceptable? - Held that:- The issue is no more res integra as has earlier been dealt with in the case of M/s. K.V. Enterprises vs. Commissioner of Central Excise, Allahabad [2018 (2) TMI 719 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Goods Transport Agency Service is liable to pay the Service Tax on the amount of freight paid by him under reverse charge mechanism. Since the appellant had not paid the same, that the recovery of the aforesaid amount alongwith the interest at the appropriate rate in accordance of Section 75 of the Finance Act read with Rule 14 of Cenvat Credit Rules, 2004 and that of Section 11AA of Central Excise Act, 1944 alongwith the penalties under Section 76, 77 and 78 of Finance Act 11AC of Central Excise Act and Rule 15 of CCR, 2004 were proposed. The entire demand was initially confirmed vide Order-in-Original No.142 dated 29.05.2015. The appeal thereof was rejected vide Order in Original No.32 dated 11.05.2018. Being aggrieved, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der challenge has impressed upon para 7 thereof and also para 18 of Order-in-Original thereof submitting that the order is in due compliance of the mandatory statutory provisions. No infirmity can be alleged. The adjudicating authorities have relied upon the relevant case laws even of the Hon ble Apex Court, while confirming the demand. Appeal accordingly, is prayed to be dismissed. 5. After hearing both the parties, I am of the opinion that the issue in the given circumstances is as to: Whether the appellant is liable to pay Service Tax on the freight paid by him to a Goods Transport Agency even when the said tax stands paid by the said transporter? 5.1 No doubt the provision as invoked in the show cause notice while proposing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nee as liable to pay service tax under reverse charge mechanism. It is also observed that the factum of payment of the impugned liability but by the service provider of GTA services and not by person paying freight was brought to the notice of the adjudicating authorities below. Commissioner (Appeals) in para 10 of the order under challenge has dealt with the same holding that from the documents as that of invoices, TR-6 Challans in respect of service tax deposited by the transporter, it cannot be established that the transporter so received the freight amount is inclusive of Service tax charged in the invoices. At this stage the invoices and the challans paid by the GTA agencies are perused. Perusal thereof shows that the invoices include ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein it has been held that once there has been no dispute regarding the payment of service tax though by the provider of GTA service the amount of service tax stands accepted by Revenue. The same cannot be demanded from the recipient of the said GTA service. The demand is liable to be set aside. 5. The decision of Hon ble Apex Court as is impressed upon by the Department to have been relied by the original adjudicating authority i.e. in the case of Auto Light India Ltd v/s. CCE reported in 2003 (154) ELT 169 (S.C.) is held not applicable to the given facts and circumstances, because vide the said decision the Apex Court has held that the Revenue neutrality or availability of cenvat credit cannot be a ground for regularization the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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