Case Law Details
Modest Infrastructure Limited Vs Commissioner of Central Excise (CESTAT Ahmedabad)
The case of Modest Infrastructure Limited Vs Commissioner of Central Excise before the CESTAT Ahmedabad involves allegations of tax evasion and jurisdictional disputes. The key matter of contention revolved around the perceived non-payment of service tax and misdeclaration of service value by the appellant, Modest Infrastructure Limited, as per the Department’s understanding.
Analysis
In the initial assessment, the Department demanded a significant sum from the appellant for non-payment of service tax under the head “Steamer Agent service” and misdeclaring the value of management, maintenance, and repair service. The appellant contested these charges, arguing that their Mumbai office, which executed the transactions in question, was independently registered with the Service Tax authorities, and had regularly filed service tax returns. Hence, the appellant claimed the show-cause notice issued by Commissioner of Central Excise & ST, Bhavnagar to be without legal jurisdiction.
The appellant also contested the categorisation of their services, asserting that the chartering of ships and tugs did not fall under “Steamer Agent service”. They further disputed the Department’s claim concerning the misdeclaration of service value under management, maintenance, and repair service.
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