2017 (6) TMI 326

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....(AR) for the appellant Ms. Padmavati Patil, Advocate for the respondent ORDER Per: Ramesh Nair The fact of the case is that the respondent M/s. Indian Oil Corporation Ltd. is engaged in the service of Transportation of their products from refinery to retail pump outlets/ depots. Against such transportation service, the transporter raises bill for transportation charges upon the respond....

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....issioner (Appeals) has allowed the appeal of the respondent on the ground that the toll tax is a statutory levy enumerated at sr. No.59 of list-II (State list) in the seventh schedule of the Constitution of India. Therefore, toll as a form of tax cannot be included in the freight amount for the purpose of payment of service tax. Being aggrieved by the Order-in-Appeal the revenue filed this appeal.....

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....doubt that the toll tax is a tax and tax cannot be levied with service tax. She submits that the transporter is a pure agent of the respondent, therefore, even if the toll tax is considered as reimbursable expenditure the same is allowed to be deducted from the gross value of GTA. For this reason also the same is not leviable to service tax. She further submits that Rule 5(1) of Service tax (Deter....

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....mmissioner (Appeals) has dropped the demand vide Order-in-Appeal no.223-225/SVS/PKL/2013 dated 11.04.2013 which has not been appealed against by the department. For this reason also the Commissioner (Appeals) order is sustainable. 4. We have carefully considered the submission made by both sides. 5. We find that the issue to be decided is whether the toll tax paid by the transporter reimburs....