2018 (2) TMI 397

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....;          for Respondent: Shri Mohammad Altaf AC(DR) Per: Anil Choudhary The issue in this appeal by the appellant-assessee, a manufacturer of sugar and molasses and also having a distillery division, is whether they are liable to Service Tax on handling charges paid separately to the transporter/supplier for handling the molasses within the f....

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....8 May, 2007 informed that they have paid Service Tax Rs. 1,45,567/- + Cess Rs. 2,911/- alongwith interest of Rs. 19,302/- vide TR-6/GTA-7 dated 08 May, 2007. Further, taking the stand that on the rest of the amount they are not required to pay Service Tax on freight paid on behalf of their buyers, but later on recovered from the buyers. Accordingly, SCN proposed to demand Service Tax of Rs. 4,63,4....

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....5/- already paid by Challan dated 4 November, 2006, 08 August, 2007 and 05 December, 2006. Further, stating that the demand is barred by limitation as admittedly on the same facts, duly recorded in the books of accounts, by the audit conducted up to the period November, 2005, no objection was raised. It was only in the subsequent audit in November, 2006, the demand have been raised on the basis of....

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....bunal. The only dispute is with regard to the handling charges paid to the transporter for handling of molasses within the factory premises. The learned counsel further urges that such handling charges form part of the cost of production and/or valuation of excisable goods cleared. Accordingly, no Service Tax is leviable for the handling charges and accordingly prays for allowing the appeal on thi....