Case Law Details
Universal Industries Vs Commissioner, CGST (CESTAT Delhi)
Appellant, inter alia urges that appellant have paid custom duty on CIF value which includes ocean freight element. Thus, there can be no demand of service tax on the purchase price of goods, even under Reverse Charge Mechanism. Accordingly, he prays for allowing the appeal with consequential benefits.
Admittedly, the appellant have purchased fertilizers which is their inputs, at CIF value which includes the ocean freight element. Thus, the demand under service tax is not attracted. I further find that the show cause notice is also on wrong facts as the date of filing of two Bills of Entry is on 6/7/2017 and 14/7/2017, but it is wrongly alleged that these have been filed on May & June 2017. Thus, the show cause notice is also erroneous on this score. Appeal is allowed.
FULL TEXT OF THE CESTAT DELHI ORDER
The appellant is in appeal against demand of service tax on ocean freight under RCM.
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