TaxTMI 
TaxTMI 
TaxTMI 
2013 (10) TMI 858
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....d collects ocean freight from the customers of behalf of his principal as well as other shipping companies. Taking a view that appellant should have paid service tax on the ocean freight element collected from the customers, proceedings were initiated which culminated in confirmation of demand for service tax of more than Rs.14 crores in respect of two periods. The first show-cause notice was issued invoking extended period and the second show-cause notice is for the normal period. After hearing both the sides for some time, we find that in this case the matter is required to be remanded to the original adjudicating authority. Therefore, we waive the requirement of pre-deposit and take up the appeal itself for final decision. 2. Before pro....
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....r (Appeals). Further, he also submits that there is no mention about the extended period at all and no justification has to why and how the extended period is applicable in the order. Moreover, penalties have been imposed under various Sections of Finance Act, 1994 but there is absolutely no justification or findings to explain why and how penalties has been imposed. Under these circumstances, he submits that the order has totally ignored principles of natural justice and therefore the matter is required to be remanded at this stage itself. 4. Learned AR on the other hand would submit that the Commissioner's order is appropriate and correct. He draws our attention to the observations of the Commissioner that all the decisions cited by the ....
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....aragraphs. The first 2-3 paragraphs relate to various sections of Finance Act and definitions and paragraph 28-29 only are the paragraphs which are recorded for considering the submissions. On going through these paragraphs, we find that the Commissioner has observed "I have examined the copies of the case laws which they have submitted during the personal hearing and find that they are not relevant in this matter". There is absolutely no indication as to what was the ratio of the decisions cited and why they were not relevant and whether there are any contrary decisions considered by him for this purpose. Similarly there are no findings as to why extended period can be invoked in this case and why penalties should be imposed. To consider a....
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.... of the Finance Act, 1994 on the value of taxable services referred to in Section 65(105)(zm) read with Section 65(12(1)(i) without exhausting the statutory remedy. The contracts entered into by the appellant(s) with its customers were not vetted. There has been no adjudication under the Act in most of these cases and, therefore, we hereby direct the competent authority under the Finance Act, 1994 to decide the matter in accordance with the law laid down. Subject to above, for the afore-said reasons, we hold that the service tax imposed by Section 66 of the Finance Act, 1994 (as amended) on the value of taxable services referred to in Section 65(105)(zm) read with Section 65(12) of the said Act, insofar as it relates to financial leasing se....
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....er. However, if the manufacturer procures raw materials from a source of his choice at a price negotiated between him and supplier of the raw materials and uses the material for manufacture of the final products which he sells, the question of his collecting the cost of raw materials as reimbursement does not arise. The concept of reimbursement will arise only when the person actually paying was under no obligation to pay the amount and he pays the amount on behalf of the buyer of the goods and recovers the said amount from the buyer of the goods." In para 6.1, the example given is one of manufacturer of goods and raw materials used in the manufacture is considered as an essential element. There cannot be any dispute. Further the decision ....