Ocean freight service tax levy remanded after unconstitutionality ruling and prior remand required fresh adjudication

Service tax demand on ocean freight for transportation of imported goods was set aside and remanded for fresh adjudication because the Gujarat HC had already held the levy unconstitutional in SAL Steel Ltd., and the assessee's own earlier matter had been remanded on the same issue. In light of that binding legal position and the prior remand, the Tribunal required the adjudicating authority to reconsider the demand and the related denial of 70% abatement under Notification No. 26/2012-ST.

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Issues: Whether the demand of service tax on ocean freight, with denial of 70% abatement under Notification No. 26/2012-ST, should be set aside and the matter remanded for fresh adjudication in view of the prior Tribunal order and the decision holding the levy unconstitutional.

Analysis: The demand related to service tax on ocean freight for transportation of imported goods. The Tribunal noted that the Gujarat High Court had held the levy itself to be unconstitutional in SAL Steel Ltd., and that in the assessee's own earlier case the matter had already been remanded for reconsideration. As the legal position had changed and the same issue was already sent back for fresh decision, the impugned order required reconsideration by the adjudicating authority.

Conclusion: The appeal was allowed by way of remand and the impugned order was set aside.

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