No Service Tax on Ocean Freight if appellant paid custom duty on CIF

Universal Industries Vs Commissioner, CGST (CESTAT Delhi) Appellant, inter alia urges that appellant have paid custom duty on CIF value which includes ocean freight element. Thus, there can be no demand of service tax on the purchase price of goods, even under Reverse Charge Mechanism. Accordingly, he prays for allowing the appeal with consequential benefits. Admittedly, the appellant have purchased fertilizers which is their inputs, at CIF value which includes the ocean freight element. Thus, the demand under service tax is not attracted. I further find that the show cause notice is also on w...