2018 (2) TMI 155

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.... w.e.f. 10.09.2004 as per Section 65(105)(zzn) transport of goods by air service means any service provided (to be provided w.e.f.16.06.05) to any person, by an aircraft operator, in relation to transport of goods by 'aircraft'. Vide Notification No.28/2004 dt. 17.09.2004 the transport of goods by air meant for export was exempted. Thus for the period 10.09.2004 to 16.09.04, the service of transport of goods by air for export was chargeable to service tax. 2.1. He further pointed out that the notification No. 28/2004 was rescinded vide notification No. 10/2005 dt. 03.03.2005 (made effective from 15.03.2005) thus w.e.f. 16.3.2005 transport of goods for air for export become taxable again simultaneously Export of Service Rules, 2005 ....

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....4.7.2005 voluntarily. Rest of the tax for this period was paid by the respondent along with interest latter on. 2.4. Ld.AR pointed out that the adjudicating authority dropped the demand without appreciating the fact that there was no exemption to payment of such tax during the said period. He argued that the impugned order fails to appreciate that the respondent had not disclosed in their ST 3 Returns, the taxable income on account of the transport of export cargo. He pointed out that the omission to pay tax and suppression of information in their ST.3 Returns clearly indicates to their malafide intention. He argued that in these circumstances the impugned order wrongly holds that there was no misstatement of facts or suppression. 2.5. Ld....

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....cation 28/2004 rescinded and exemption withdrawn w.e.f. 15.03.2005 16.06.2005 Notification No. 28/2005 dt. 07.06.2005 issued wherein proviso (b) was introduced to Rule 3(2) of the Export Rules wherein receipt of export proceeds in foreign exchange made mandatory for availing exemption. 16.06.2005 to 14.07.2005 Intervening period where the exemption was not in force 15.07.2005 Unconditional exemption in respect of transport of export goods by air was reintroduced again vide Notification No. 29/2005-ST dt. 15.07.2005 Thus admittedly during the period 10.09.2004 to 16.09.2004 and 16.6.2005 to 14.07.2005 there was duty liable to be paid on the transport of goods by air for the purpose of export. On merits of the issue there is no contes....