2017 (12) TMI 1093

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....ort cargo was handled by the Appellants. ii) Recovery of service tax of Rs. 7,95,640/ for the period 2009-2010 and & 20.10.2011 for Amt. Rs. 5,75,276/- for the period 2010-2011 respectively, on freight surplus/ ocean freight difference. - All 3 (three) Show Cause Noticesinvolved amount of Rs. 3.01 Crores approximately pertaining to excess or mark up on ocean freight. iii) Service Tax on brokerage (Service Tax amount Rs. 33.26 Lakhs approx.) iv) Sundry Balance written off (Rs.4.32 Lakhs approx.) v) Agency income collected from M/s Hanjin Shipping Company (Rs.4.35 Lakhs approx.) vi) Wrong availment/ utilization of Cenvat credit (Rs.12.35 Lakhs approx.) vii) Difference in reconciliation of income shown in Balance Sheet and Se....

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....ant's grievance is that merely because of book entry, that does not ipso facto give rise to taxation without ascertaining taxability thereof. 5. Explaining on agency income collected, Revenue has gone into character thereof to impose tax of Rs. 4.35 lakhs on this count. Nature of the receipt of the appellant on such count not being examined, adjudication suffers from legal infirmity. 6. On the allegation of wrong availment of cenvat credit, appellant's grievance is that, credit was denied for no good reason stated. 7. On difference in reconciliation of income appearing in balance sheet and service tax return, there was a demand of Rs. 2.69 crores baselessly. It does not give rise to taxability. The tax liability arises in the event....

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....stand whether there was a taxable event. In the event there was a provision of taxable service, that shall be taken into account to determine the liability. (4) No taxation shall be made in respect of the transactions not amounting to taxable service provided. (5) The balance written off in the balance sheet should not prima facie be opined to be the receipts from taxable service provided. Appellant's submission on this count should be thoroughly examined. (6) The character of agency income and mark up on ocean freight collected to be examined threadbare. Similarly character of brokerage shall be examined thoroughly. (7) The element of cenvat credit claim is to be examined on the basis of law. (8) Reason being heartbeat of ju....