Ridhi Sidhi Logistics Vs Commissioner of Central Goods and Service Tax and Central Excise (CESTAT Delhi)
M/s Ridhi Sidhi Logistics appealed against Order-in-Appeal No. 860(CRM)ST/JDR/2018 dated 06.08.2018, under which service tax demand of Rs. 43,15,181/- along with interest and penalties had been confirmed. The appellant provided Clearing & Forwarding Agent services to M/s. Parle Biscuits Pvt. Ltd. and M/s. Parle Products Pvt. Ltd. under agreements dated 23.10.2009. It received Rs. 5,000/- per month for C&F services and was separately reimbursed freight and handling charges. The appellant also provided lorries/trucks for transportation of goods from the godown to wholesalers and paid service tax on the transportation activity as a Goods Transport Agency on behalf of the consignors after availing the applicable 75% abatement.
The Department treated the transportation charges as part of the consideration for C&F services and demanded service tax on the disputed freight for 2009-10 to 2012-13. The appellant submitted that transportation was an independent activity, that service tax had correctly been discharged under the GTA category on behalf of the persons liable to pay the tax, and that reimbursed freight was not includible in the taxable value of C&F services for the relevant period. It also challenged invocation of the extended period and penalties.
