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TMI Blog2024 (10) TMI 1349X X X X Extracts X X X X X X X X Extracts X X X X ..... rt has held that ' The Notification Nos. 15/2017- ST and 16/2017-ST making Rule 2(1)(d) (EEC) and Rule 6(7CA) of the Service Tax Rules and inserting Explanation-V to reverse charge Notification No.30/2012-ST is struck down as ultra vires Sections 64, 66B, 67 and 94 of the Finance Act, 1994; and consequently the proceedings initiated against the writ applicants by way of show cause notice and enquiries for collecting service tax from them as importers on sea transportation service in CIF contracts are hereby quashed and set aside.' Following the above judgment, in another case of COMMISSIONER OF SERVICE TAX, AHMEDABAD VERSUS KIRI DYES AND CHEMICAL LIMITED [ 2023 (3) TMI 1400 - CESTAT AHMEDABAD] , this Tribunal held that ocean freight ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned orders. 4. We have carefully considered the submission made by both the sides and perused the records. We find that issue involved in the present case is taxability of ocean freight in respect of import of goods through vessel. This issue is no longer res-integra as the same is settled by the Hon ble Gujarat High court in the case of SAL Steel Ltd (supra) wherein the Hon ble high court has passed the following judgment : - 25... the service proposed to be taxed under the impugned provisions is admittedly that of transportation of goods upto the Indian Port i.e. land mass of the country; and this service covering sea transportation of hundreds or thousands of KMs is an event occurring beyond the land mass of the country, and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the Parliament has restricted the provisions of Chapter-V of the Finance Act in respect of service tax to events occurring in the taxable territory i.e. India by virtue of Section 66B (the charging section), Section 66B(52) and Section 64(1) and therefore the impugned Notifications issued by the Executive i.e. the Central Government by way of Rules, are beyond Sections 64, Section 66B and Section 65B(52) of the Finance Act. The impugned Rules and Notifications seek to levy and collect service tax on services rendered and consumed outside India, and therefore these provisions are ultra-vires the above referred three provisions of the Act made by the Parliament. (...) 58. In view of the aforesaid discussion, the writ application succeeds a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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