TaxTMI 
TaxTMI 
2020 (3) TMI 18
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....ppellant to assail the said matter. 2. Factual backdrop of this case is that appellant had registered itself with Service Tax Department as Input Service Distributor. During the course of EA 2000 audit conducted for the period 2010-11 to 2013-14, it was observed that appellant had failed to discharge service tax liability under reverse charge mechanism on "goods transport agency" services received by it and re-conciliation of ST-3 Returns with audited financial statement indicated differential dutiable amount against which R.9,69,602/- service tax was payable under notification no. 30/2012-ST. Further against taking vehicle on lease from M/s. ALD Automotive Pvt Ltd for use of staff members, "maintenance and repair" services were availed by....
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....igher than what has been declared in ST-3 Returns for the reason that appellant sold goods on FOR basis but on specific request from customers it had sent some on to-pay basis in which case appellant had to reduce the amount from the customers payable amount that was originally fixed along with inclusion of freight charges and no short payment of service tax of Rs. 9,69,602/- under reverse charge mechanism as alleged in the show cause made. He further submitted that basing on Nirmal Seeds Pvt Ltd judgement reported in[2017 (3) GSTL 313 (Tri-Mumbai)], OIO and OIA were passed but actually the same is dis-similar to the appellant's case because there in Nirmal Seeds Pvt Ltd, the assesse had entered into an agreement for transportation of goods....
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....for repair and maintenance of motor vehicle which was opined in the OIO and OIA. Learned Counsel for the appellant also argued, with reference to judicial decision reported in Stanzen Toyotetsu India (P) Ltd. [2011 (23) S.T.R. 444 (Kar.)], Pricol Ltd [2016 (41) S.T.R. 649 (Tri.-Del.)], that the vehicles were taken on lease for daily commutation of employees so as to perform their duties effectively and it was tobe regarded as management of vehicle but both the adjudicating authority and Commissioner (Appeals) had emphasised and the maintenance of repair of vehicle so as to drag in the exclusion clause to deny Cenvat Credit to the appellant for which he prayed to set aside the order passed by the Commissioner (Appeals). 5. Learned Authorise....
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....Second, notification no. 30/2012-ST clearly stipulated that the service recipient in respect of transportation of goods is liable to pay 100% service tax under the reverse charge mechanism. Both the grounds are unsustainable for the reason that acceptance of an assessee or offer by an assessee to pay tax will not make the taxation rule legally tenable since it has to pay tax supposed to be imposed in conformity to Article-265 of the Constitution of India and secondly in to-pay freight system, the receiver of goods transport service is the purchaser of goods and not its seller for which as per the judgement referred by the Learned Counsel for the appellant, cited supra no duty liability arises for the appellant for transportation of goods ma....