Case Law Details
Jai Balaji Industries Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
Introduction: The case of “Jai Balaji Industries Limited vs. Commissioner of Central Excise” heard by the Central Excise and Service Tax Appellate Tribunal (CESTAT) Kolkata revolves around the issue of whether Service Tax should be levied on the actual transportation charges incurred by the appellant or on provisions made for transportation charges.
1. Background of the Case: The appellant, Jai Balaji Industries Limited, is a mini integrated steel plant engaged in the manufacture of various products. They procured inputs for manufacturing their products, including different modes of transportation services. The case pertains to the period when Goods Transport Agency services were brought under the service tax net.
2. Key Arguments: The dispute arose when there was a variation in transportation charges between carriage inward and outward, as per the values reported in the ST-3 Returns of the appellant. A show-cause notice was issued, alleging that the appellant had paid less service tax due to the difference in reported transportation charges.
3. CESTAT Kolkata’s Decision: CESTAT Kolkata examined various aspects of the case and considered the appellant’s arguments:
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