TaxTMI 
TaxTMI 
2019 (5) TMI 1938
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....o movement, offshore activities in oil and gas sector, chartering of Specialized barges, Tugs for various offshore construction projects, transportation of offshore structure, line pipes, etc. are liable to reverse an amount under rule 6(3) of CCR on ocean freight. 2. The Appellant also owns three vessels/ships which are used for transport of bulk cargo like fertilizers. Among other services Appellant also provides transport by ocean freight. In the course of audit for the period 2010-11 to 2014-15, on scrutiny of financial accounts/records it was noticed that the Appellant is providing various taxable services as well as ocean freight. It appeared to revenue that Ocean Freight was not defined in taxable service under section 65 (105) of ....
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....service, shall be the location of the person liable to pay tax. It further appeared that outbound Freight is exempted as the place of provision of services in non-taxable territory, and the claim of the assessee, claiming the benefit of export is not acceptable under the place of provision of Service Rules 2012, as the Appellant being provider of the service, and the person exporting the goods both are located within India. Accordingly it appeared that the appellant is required to reverse an amount attributable to Ocean Freight, under rule 6(3) of CCR 2004, as the assessee is not maintaining separate account. According it was proposed to demand an amount by way of disallowance of irregular credit amounting to Rs.30,16,076 under Section 73 (....
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....her or to replace. Further in Blacks law dictionary, 'substitute' is defined as - To put in place of another person or thing, or to exchange. In Collins dictionary the word 'substitute' has been defined to mean -to serve or cause to serve in place of another person thing, to replace, or a person or thing that serves in place of another, such as a player in the game takes the place of an injured colleague. By reason of the amendment by substitution, no substantive right has been taken away nor any penal consequence has been imposed. Only an obvious mistake was sought to be removed thereby. 7. The Learned Counsel also contends that there is no case of revenue that the Cenvat Credit was wrongly taken. Accordingly in the circumstances Rule 14....
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....s were not maintainable and not sustainable. 8. The learned counsel further states that it is admitted fact that the definition of exempted service was substituted at least on two occasions one in 2012 and again in 2016, which is the period under dispute. Further legislature clarified that exempted service does not include ocean freight. In this view of the matter, the show cause notices are only misconceived and also by way of change of opinion, and hence extended period is not invokable. 9. The Learned A R for Revenue have relied on the impugned order. 10. Having considered the rival contentions I find that Rule 2 (e) of Cenvat Credit Rules Credit Rules, which defines exempted service, have been substituted from time to time and fin....