2022 (11) TMI 798

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....d Representative for the respondent ORDER Heard the parties. 2. The issue involved herein is whether vide Order-in-appeal service tax demand of Rs. 6,86,185/- has been rightly confirmed on account of freight (ocean/ air) under reverse charge mechanism. 3. Brief facts of the case are that the appellant is a manufacturer of Electric Energy Meter, Moulded Meter parts etc. In the course of audit f....

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....as also clarified vide Notification No. 16/2017-ST read with Board Circular No. 206/4/2017, that where exact amount of freight paid by the foreign exporter to the foreign shipping line is not known (in case of CIF value of imports), service tax would be payable @ 1.4% of the total CIF value of imports alongwith 0.05% S.B. Cess. Accordingly, show cause notice dated 16.01.2020 was issued invoking th....

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....that, out of the total demand on the total value of freight (Rs.57,35,547/-) on which tax of Rs. 5,74,560/- has been demanded, pertains to ocean freight, which has been charged separately and accordingly tax demand on this amount collected at Rs. 86,185/- was confirmed, penalty was also reduced proportionally to amount of Rs. 86,185/-. Being aggrieved, the appellant filed appeal before this Tribun....