Case Law Details
Shemco India Transport Vs Commissioner of Central Excise (CESTAT Chandigarh)
Introduction: In a recent legal battle between Shemco India Transport and the Commissioner of Central Excise, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Chandigarh issued an order dated November 1, 2023. The case revolves around the taxation of cars and buses provided on a hire basis as contract carriage with payment based on their usage.
Factual Background:
Shemco India Transport faced allegations in a show cause notice dated September 29, 2008, suggesting the provision of various services, including ‘Cargo Handling Services,’ ‘BAS’ (Business Auxiliary Service), ‘Manpower Recruitment & Supply Agency Service,’ and ‘Erection Commissioning & Installation Services’ to Nestle India Ltd, Moga. The appellant was accused of not obtaining service tax for these services. Nestle India Ltd confirmed the services provided by Shemco India Transport, and the appellant received an amount of Rs. 34,22,047, involving service tax of Rs. 3,09,800.
The Adjudicating Authority confirmed the demand for service tax, interest, and penalties. The Commissioner (Appeals) upheld this decision, leading to the appellant filing an appeal before CESTAT Chandigarh.
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