2014 (7) TMI 1080

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re engaged by M/s Tata Steel Ltd. (M/s TSL) for conversion of raw materials on job work basis. It is his submission that the goods manufactured out of the raw materials supplied by M/s TSL, were cleared by the Applicants on payment of appropriate excise duty. The demand notice has been issued alleging non-payment of service tax on the services rendered by the Applicant under the category of "Support Services of Business or Commerce" (BSS) as the Applicant had handled the goods manufactured on job-work basis in the capacity of a "Marketing and Consignment Agent " of M/s TSL. It is the Department's case that the Applicant had engaged transporters for transporting the job-worked goods to various stock yard of M/s TSL, discharged freight an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....licant had received the service charges form M/s TSL pursuant to the Consignment Agency Agreement dated 30th March, 1998, in addition to the amount received against the conversion of raw materials, supplied by M/s TSL by way of reimbursement of freight charges. It is his submission that at Clause 15 of the Consignment Agency Agreement dated 30th March, 1998, it has been stipulated that the Applicant shall be paid remuneration @ Rs. 10.00 lakhs/month for the marketing services and this amount has been included in the fixed charges specified in the Conversion Agency Agreement and it is not payable separately. 6. In his rejoinder, the ld. Advocate for the Applicant, submitted that besides reimbursement of freight charges, which is incurred by....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bursement of the freight charges, at actuals. Prima facie we find that the case has been built against the Applicant, as is clear from the impugned notices that the Applicant had received service charges, for rendering post removal activities, from M/s. Tata Steel Ltd., but failed to discharge Service Tax as required, under the category of "Business Support Services". At this stage, we are not impressed with the argument by the Ld. A.R. for the Revenue that in the said conversion charges, the post removal service charges are already included therefore, the Applicant are required to discharge Service Tax, in addition to the excise duty paid on such converted material, including freight charges. The Ld. Spl. Counsel also could not place any e....