Balaji Integrated Shipping India Pvt Ltd. Vs Commissioner of Central Tax (CESTAT Hyderabad)
CESTAT Hyderabad allowed the appeal filed by Balaji Integrated Shipping India Pvt. Ltd. and set aside the impugned order confirming Service Tax demands relating to Ocean Freight and differences between financial records and ST-3 returns. The appellant, a Clearing and Forwarding agent registered under Clearing and Forwarding Agency Services and GTA Services, was alleged to have excluded Ocean Freight, CWC/CONCOR charges and CFS charges while determining taxable value. Revenue also alleged that the appellant had added a markup to Ocean Freight and was liable to Service Tax on the freight and markup. The Tribunal found the appellant’s claim that it was trading in container space to be correct and, on that ground alone, set aside the demands of Rs.60,56,570/- and Rs.21,12,773/-. The Tribunal also held that the separate demand of Rs.20,32,859/- was vague because Revenue had not identified the head of service under which the alleged short payment arose. Since the period in dispute was prior to 01.07.2012, that demand was also set aside. The Tribunal further found no case of suppression, fraud or wilful mis-statement and consequently set aside penalties under Sections 77 and 78. The appeal was allowed and the impugned order was set aside, with consequential benefits as per law.
Background of the Case
Balaji Integrated Shipping India Pvt. Ltd. was a Clearing and Forwarding agent registered with the Department of Service Tax under the heads Clearing and Forwarding Agency Services and GTA Services.
