2012 (7) TMI 347

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....ken the activity which is covered under Business Auxiliary Service and are liable for Service Tax. Another demand of Rs.22,85,484/- in respect of activity of erection and commissioning. 3. The contention of applicant in respect of the demand of Rs.3,57,801/- is that applicant has rightly taken credit in respect of the Service Tax on outward transportation. The cost of outward transportation is part of the price. The applicant relied upon the Board Circular dated 23/08/2007 whereby it has been clarified that in case the outward freight is part of price, the credit of service tax paid in this regard is admissible. In view of this the contention is that the applicants are entitled for credit of service tax paid in respect of outward transpo....

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....e present grounds of appeal therefore the applicants want to make a new case which is not permissible under law. 6. In respect of the demand of Rs.54,01,842/-, the contention of Revenue is that before the adjudicating authority in reply to show cause notice, the applicants admitted the taxability of the service and claimed the benefit of Notification No.21/05-ST dated 7/6/05. Even in the taxability of service was not challenged in the present appeal also. Therefore, the plea of the applicant that prior to 16/6/05, the activity of the applicants are not covered under Service Tax has no merit. In respect of the demand of Rs.22,85,484/-, the demand is confirmed by treating the activity undertaken by the applicant is erection and commissioni....

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....een clarified that credit in respect of Service Tax on outward transportation is admissible if the freight is part of price. In absence of any evidence to show that the freight is part of the price, we find that applicant had not made out a case for total waiver of the demand in this regard. 9. In respect of the demand of Rs.54,01,842/- it is confirmed on the ground that the applicant undertaken the activity which is covered under the scope of business auxiliary service. The applicant admitted during argument that from 16/6/05 the applicants are liable to pay Service Tax as provider of business auxiliary service. Further we find that the taxability of the service was not before the adjudicating authority. The applicant admitted that the ....