2015 (1) TMI 456 - AT - Service Tax

Appellant wins service tax appeal as tribunal rules charges not subject to tax under Finance Act, 1994.

INDIAN OIL CORPORATION LTD. Versus COMMISSIONER OF CENTRAL EXCISE, GOA

INDIAN OIL CORPORATION LTD. Versus COMMISSIONER OF CENTRAL EXCISE, GOA - 2015 (38) S.T.R. 501 (Tri. - Mumbai) Issues:- Appeal against demand of service tax, interest, and penalties under Business Auxiliary Service category- Application for extension of StayAnalysis:1. Demand of Service Tax, Interest, and Penalties:The appellant appealed against the impugned order demanding service tax, interest, and penalties under the Business Auxiliary Service category. The case involved an agreement with M/s. Zuari Industries Ltd. for the sale of goods on a high seas sale basis. The revenue contended that additional handling charges and facilitation charges were leviable to service tax. The appellant argued that they were not a service provider but selling goods on a principal-to-principal basis. They imported goods in their own name and account, thus not engaged in procurement for ZIL. The appellant relied on a previous case to support their argument that charges paid by them were for their own purposes and not part of service tax liability. The tribunal agreed with the appellant, stating that expenses incurred before the transfer of goods formed part of the sale price, and charges paid were for the appellant's own purposes, not subject to service tax under the Finance Act, 1994.2. Application for Extension of Stay:The appellant also filed an application for an extension of Stay, which was disposed of as the appeal itself was taken up for final disposal. The tribunal set aside the impugned order, allowing the appeal with any consequential relief. The judgment concluded by disposing of the application for an extension of stay, providing relief to the appellant in the case.