2018 (1) TMI 364

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....r of electric transformer falling under Chapter Heading 8505 of Central Excise Tariff Act, 1985. Appellants enter into the agreements with their customer for delivering the transformers at their premises on the amount as per agreement. Appellants arrange for transportation of goods and pays service tax on transportation charges paid to transport operator. During the period in dispute i.e. March 2011 to June 2013, appellants availed Cenvat Credit of Rs. 13,11,933/- towards service tax so paid on availing transport services. 3. The impugned order in appeal upholds disallowance of credit, on the ground that the said activity of transportation of goods does not fall in the definition of input service. It has also been held that the delivery ....

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....ther transporter was not liable taxable in view of SI. No. 22 (b) of Notification No. 25/2012 which grants exemption from payment of service tax- SI. No. 22 of Notification No. 25/2012 reads as under:- "Services by way of giving on hire- (a) To a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (b) To a goods transport agency, a means of transportation of goods". 6. In view of the above letter dated 11.10.2013 (stand taken), appellants stopped paying service tax on availing transportation services for transport of finished goods to customers premises. It appears that department accepted the appellants contention and did not raise any demand for the period October 20....

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....ified person. Therefore service tax if any would be payable by them. It cannot be the department s case that service tax is to be first paid by the appellants on the amount of freight paid by the appellants to M/s SS Road Lines and other transporters and again by M/s Madhyanchal Vidyut Vitran Nigam Ltd on the amount paid by them to the appellants. It would amount to doubtful taxation on same service". 9. Accordingly, learned counsel prays for allowing his appeal. 10. The learned AR for the Revenue relies on the impugned order. 11. Having considered the rival contentions I hold that in view of the provisions of Rule 2(i)(d) of Service Tax Rules, 1994, it is the obligation of the service receiver namely the Power Corporation....