https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=762950 https://www.taxtmi.com/caselaws?id=762950 Refund of Service tax paid on Ocean Freight during May, 2017 and June 2017 - rejection of refund claim filed by the respondent on ground of CBEC Circular No. 206/4/2017 dtd. 13.04.2017 stating the benefit of the exemption would not be available in case where the services are rendered by a foreign shipping line as much as the said shipping lines are not registered in India and do not follow the provisions of Cenvat Credit Rules, 2004. HELD THAT:- The appellant filed refund claim for differential service tax paid on ocean freight during may 2017 and June 2017, since they have paid service tax on full value of the transportation service of goods in vessel without availing of exemption under Sr. No. 10 of Notification No. 26/2012-ST dtd. 20.06.2012 as amended. It is found that Vide Notification Nos. 15/2017-S.T. and 16/2017-S.T. respectively dated 13th April, 2017, the importer of goods as defined in the Customs Act, 1962 has been made liable for paying service tax in cases of services of transportation of goods by sea provided by a foreign shipping line to a foreign charterer with respect to the goods destined for India. This change has come into effect from 23rd April, 2017. The Shipping/steamer agents are no longer liable to pay the service tax for the services provided on or after 23rd April, 2017. Thus in view of the Notification No. 16/2017 ST dtd. 13.04.2017 read with Notification No. 15/2017 ST dtd. 13.04.2017, the importer was liable for payment of Service tax @1.4% on the CIF Value of the imported goods. As regard the disputed condition of Sr. No. 10 of Notification No. 26/2012-ST dtd. 20.6.2012 it is found that the said condition provide that CENVAT Credit on inputs, Capital Goods and input services, used for providing the taxable services, has not been taken under the provisions of the Cenvat Credit Rules, 2004. Ld. Commissioner (Appeals) in this context has considered the Judgment of Hon ble Apex Court in the case of SRF Ltd [ 2015 (4) TMI 561 - SUPREME COURT] vis-a-vis disputed condition and dealt with the applicability of the said condition in the present matter. There are no reasons to interfere with the impugned order. It is found that on the identical dispute allowing the refund claim on service tax paid on ocean freight the Tribunal in the matter of Panasonic Energy India Co. Ltd. Vs. Commr. Of Cus. C.Ex. CGST, Indore [ 2021 (8) TMI 630 - CESTAT NEW DELHI] held that It is thus eminently clear from the aforesaid observations made in the impugned order that the duty, which was paid by the petitioner, which was otherwise not payable on the exported goods and therefore, rebate of such duty was not admissible in terms of Rule 18 of the Central Excise Rules. However, the duty, which was paid by the petitioner is held to be treated as voluntary deposit. As per Section 142(3) of the GST Act, every claim for the refund filed by any person before, on or after the appointed day i.e. 1-7-2017 for refund of any amount of Cenvat credit, duty, tax, interest or any other amount paid under the existing law, should be disposed of in accordance with the provisions of existing law and any amount eventually accruing to such person should be paid in cash. It is also found that High Court of Gujarat in Mohit Minerals Pvt. Ltd. v. Union of India 1 ors.[ 2018 (2) TMI 770 - GUJARAT HIGH COURT] held that no tax is leviable under the Integrated Goods and Services Tax Act, 2017, on ocean freight, for services provided by a person, located in a non-taxable territory, by way of transportation of goods on a vessel from a place outside India up to Customs station of clearance in India. However, the said judgment is pertaining to the GST but ratio of said judgment also applicable in Service tax matter. Thus, no grounds have been made to interfere with the order passed by the Learned Commissioner (Appeals). Accordingly, the appeal filed by revenue is dismissed. Case-Laws Service Tax Mon, 02 Dec 2024 00:00:00 +0530