TaxTMI 
TaxTMI 
2009 (5) TMI 809
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....ue of Rule 2(d)(iv) of Service Tax Rules, 1994. A show cause notice was issued to the appellant on the following grounds; (1) The appellant had paid charges amounting to Rs. 2311122/- for the period from 1-1-2005 to 30-9-2005 on which they had failed to discharge service tax amounting to Rs. 235734/- under the category of transport of goods by road service. (2) The appellant had undertaken job work activities for M/s. JSW Steel Ltd., and M/s. Vatsala Metals and have charged job charges amounting to Rs. 1052210/- for the period 10-9-2004 to 31-3-2005 on which they had not paid the service tax under the category of business auxiliary service amounting to Rs. 107326/-. 3. The Assistant Commissioner held that in respect of 15 transporters th....
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....lity to pay tax in certain cases has been shifted to either the consignor or to the consignee depending upon who actually paid the freight. In other cases where neither the consignee nor consignor is required to pay the service tax, the responsibility for paying service tax continues with the concerned Goods Transport Agency. The condition of not taking "credit of duty paid on inputs of capital goods used for providing such taxable service" necessarily should relate to the services actually rendered by the Transport Agency. The respondent has not actually rendered the said services; as a consignor he has not availed the credit of duty paid on inputs of capital goods for providing such taxable services; the respondent merely paid the tax whi....
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....it is only w.e.f. 16-6-2005 any service in relation to production or processing of goods for or on behalf of the client is liable to payment of service tax. The present demand is prior to 16-6-2005. 9. I have gone through the above and find that Letter F. No. B1/6/2005-TRU, dated 27-7-2005 at www.cbec.gov.in clarifies the scope of BAS. Para 24.1 and 24.2 are reproduced below; One of the taxable activities prior to amendment by Finance Act, 2005 under business auxiliary service was 'production of goods on behalf of the client'. The activities that amount to manufacture within the Central Excise Act were not covered within the scope of the taxable service. Amendments have been made to define this taxable activity as 'production or processin....