TaxTMI 
TaxTMI 
2018 (12) TMI 876
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....he appellant has urged the following two questions of law for our consideration :­ (i) Whether in the facts and circumstances of the case and in law, the Tribunal is justified in confirming the demand of service tax from the appellants on freight charges in terms of Rule 2(1)(d)(v) of Service Tax Rules, 1994? (ii) Whether in the facts and circumstances of the case and in law, the Tribunal is correct in invoking extended period of limitation and upholding the imposition of equivalent penalty under Section 78 of the Finance Act, 1994 along with interest? 3. The appellant is engaged in production of seeds and fertilizers ("said goods" for short). The appellant supplies its said goods to its dealers, who in turn sell it to the ulti....
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.... Balaji Fertilizers, Dharmabad 320975.00 2500 318475 2500 2500 4 02139 dtd. 31.08.2009 Umesh K.S.K. Aurangabad 357408.00 4000 351408 4000 4000 From the above, it is the case of the Revenue that the appellant is reimbursing the freight amount to their consignees to the extent freight is paid by the consignee. Besides, it was also found that the appellant was also issuing credit notes for reimbursement of freight charges. Thus, the case of the Revenue is that the freight is ultimately paid by the appellant i.e. the consignor even in the cases where invoices show balance freight amount to be paid by the consignee­dealer. This as the agent of the appellant­assignor. 5. Thus, on the above b....
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.... of Central Excise (Appeals). By order dated 4th March, 2013 the appeal of the appellant was dismissed. 9. Being aggrieved, the appellant filed further appeal to the Tribunal. By the impugned order dated 28th February, 2017, the Tribunal dismissed the appellant's appeal. It inter alia held on facts that the manner of invoicing and the internal accounts maintained by the appellant shows that the entire arrangement has been made with dealers so as to reduce its service tax liability. It upheld demand, invocation of extended period of limitation and imposition of penalty. 10. Mr. Shah, learned Counsel in support of the appeal submits as under :­ (a) In view of the clear provisions of Rule 2(1)(d)(v) of the Service Tax Rules, t....
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....e appellant. This factual finding of the authorities was based on detailed scrutiny of the invoices and documents, in particular, the ledger account maintained by the appellant which shows the amount, which was reduced from the invoice is also accounted as freight reimbursement. It was in these facts that the authorities have held that the freight paid by the dealers was for and on behalf of the appellant. Thus, the appellant would be liable for payment of service tax. We note that the Tribunal in the impugned order makes a specific reference to the decision in Raj Laxmi Mills (supra) and found that the same would not apply in the facts of the appellant's case as in that case unlike in this case, a finding has been reached that the cons....