2019 (4) TMI 1084

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....t has been engaged in supply of tangible goods services which company was raided by the Anti- Evasion Wing of Service Tax -I, Mumbai. I t was pointed out by them that appellant was recipient of insurance auxiliary services from abroad for its vessels but fail to pay service tax under the revers charge mechanism for the period between 11.04.2008 and 31.03.2013 to the tune of 43,21,540/ -. I t ha d not paid duty for supply of tangible goods from 15.06.2008 to 31.11.2008 for which service tax demand of Rs. 8,95,482/ - was also made. For wrong availment of Cenvat credit telephone used by directors, service tax demand of Rs. 28,439/ - and payment of GTA which was made by utilizing Cenvat credit was held to be paid by cash to the tune of Rs. 9,65....

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....d issued circular dated 29.09.2011 to clarify the exact nature of taxability on the reverse charge mechanism to be made effective only from 18.04.2006 and it was due to such confusion, appellant consider ed that insurance services for vessels was not taxable. 4. Learned Counsel for the appellant further submitted that such confusion also persisted in respect of mining services or supply of tangible services as Indian National Ship Owner Association had challenged the same before the Hon'ble Bombay High Court, as referred above, and appellant had not charged or recovered service tax on those services but preferred to meet the duty demand itself with intention to mitigate further rejection. Likewise, referring to decisions of HEG Ltd repor....

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.... -MUM, Bharat Forge report in 2016 - TIOL - 12 - CESTAT - MUM & Jet Airways report in 2016 (44) STR 465, and stressing his emphasis on the Tribunal's order in Jet Airways, Learned Counsel for the Appellant argued that appellant could have paid the entire service tax and availed Cenvat credit on supply of Tangible goods services as well as insurance vessels etc. it is revenue neutral situation and in case of reverse charge mechanism, Revenue neutrality is a good ground for which order of the Commissioner (Appeals) is required to be set aside. 6. In response to such submission s, Learned AR for the respondent department M.P. Damle has drawn attention of this court to para 7 & 8 of the Commissioner (Appeals) order to justify the reasoning a....

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....be chargeable to service tax, under reverse charge mechanism under Section 66A of the Finance Act, 1994 read with Rule 2(1) (d) (iv) of STR, 1994. The Appellants are having specification vessels including accommodation, barges and tugs etc., which are primarily used by Oil and Gas Industries and are also providing water diving services. In the light of confusion within the industry and challenge on levy, the Appellants registered themselves on 21.11.2018, under 'Supply of Tangible goods Services' classifiable under Section 65 (105) (zzzzj) read with Section 65(50) of the Finance Act, 1994 and started paying service tax. Respondent Department entertained a view that for the period prior to registration from 15.06.2008 to 30.11.2008, the Appe....