TaxTMI 
TaxTMI 
2024 (10) TMI 1259
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....5 to 30.09.2015), in terms of the first proviso to Section 78(1) of the Act 5. The appeal filed by the appellant, is disposed off accordingly." 2.1 Appellant is engaged in the manufacture of biscuits and also registered, vide Service Tax Code AADCM8831DST001, for receiving transportation of goods by road service taxable under the Finance Act, 1994. 2.2 During the scrutiny/ audit of the records of the appellant it was noticed that they had short paid Service Tax (including Cess) to the tune of Rs.2,77,682/-, during the period June, 2011 to September, 2015, for receiving the transport of goods be road service on which they were required to pay Service Tax under the reverse charge mechanism 2.3 A show cause notice dated 29.06.2016, was issued to the appellant asking them to show cause as to why- (a) Service Tax amounting to Rs. 2,77,682/- (including Cesses) should not be demanded and recovered from them under proviso to sub-section (1) of Section 73 of the Finance Act, 1994, (b) Interest at appropriate rate should not be charged and recovered from them under the provisions of Section 75 of the Finance Act, 1994, and (c) Penalty should not be imposed upon them under Sectio....
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....Rule cannot be invoked in present case. * Demand is barred by limitation. Reliance placed on the decision of tribunal in case of Khaira and Associates [2020 (34) GSTL 224 (T-Del)] and Computer Science Corporation India Pvt. Ltd. [Final Order No 70162/2024 dated 01.04.2024 in Service Tax Appeal No 52075 of 2015] 3.3 Arguing for the revenue learned authorized representative re-iterated the findings recorded in the impugned order. 4.1 We have considered the impugned order along with the submissions made in appeal and during the course of arguments. 4.2 Impugned order records findings as follows: "4.1 I have gone through the facts of the case, the averments made at the time of the personal hearing and all other material/ documents available on record. It is observed that: (i) The demand of Service Tax (including Cesses) of Rs.2,77,682/- is based on examination of the ST-3 returns of the appellant vis-à-vis the statements of freight details maintained by the appellant; (ii) The appellant during the adjudication proceedings had submitted that freight paid for transportation of goods included certain penalties for damage to goods or late delivery of goods etc., and they ....
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.... demurrage or by any other name whatever called for the provision of a service beyond the period originally contracted or in any other manner relatable to the provision of service. 4.3.1 Since the penalties deducted by the appellant, from the freight, was relatable to the provision of transport of goods by road service, I, thus, find that the same were required to-be included in the taxable value of this service, w.e.f, 01.07.2012 only and not prior to 01.07.2012. Thus, in this case, the Service Tax liability of the appellant, for 01.07.2012 to 30.09.2015, was Rs.1,76,720/- 4.4 It is further observed under the self-assessment procedure prescribed under the statute, the appellant were required to assess & pay their Service Tax liability correctly, whereas the non-payment of Service Tax could be detected only during scrutiny of the records of the appellant, Even, they suppressed the taxable value in the ST-3 returns, Thus, I find that there was suppression of facts with the intent to evade payment of Service Tax, on the part of the appellant and as such, the extended period of limitation has been rightly invoked in this case, for confirming the demand of Service Tax (including ....
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....ad as follows: SECTION 67. Valuation of taxable services for charging service tax.- (1) Subject to the provisions of this Chapter, where service tax is chargeable on any taxable service with reference to its value, then such value shall,- (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration; (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service befor....
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....eason whatsoever, you shall be bound and liable to pay and we shall be entitled to recover penalty Rs 800/- per day per truck, in case delay is beyond 1 day, then Rs 1000/- will be recovered at the time of clearing the bills from day One 37. You will be paid freight per trip on full truck load basis, for the material transported by you from one point to another . However for multi-point pick up / delivery, Parle shall pay Rs 400/- for each such additional delivery to Carrier, provided the distance between both the points are more than 5km 41. Carrier will be responsible to deliver the consignment in right quantity and sound condition within the stipulated transit day specified by Parle. For any delay Parle has right to deduct Rs 500/- per day for FTL [Taurus (10 tyre vehicle/24'ft container) and Rs-700 per day for containers > 28'FT as penalty and the same shall be recovered from Carrier's freight bill and also keep us informed regarding the status of the consignment the due date in such 42. In the event , the due date of transit time falls on a Sunday / holiday at DC cases shall be deemed to be the next working day in that DC, 43. You shall ensure that all ....
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....0/-, we will recover the value of goods to the extent of Rs 2000/- and on balance value ,deduction of transit damage claims wil be done for minimum 20% of the consignment value. Higher % of deduction will be based on no of incidences occurred and also liable for black listed which will always be at the discretion of Parle on case to case basis. f. In cases of normal shortages, the Maximum Retail Price (MRP) of shortages in goods shall be deducted from carrier's bills the product for such 6. Payments 3. Carrier shall operate on freight paid' basis and will be paid on the basis of vehicle type freight trip for the material transported by Carrier from one point to another as mentioned in Schedule A. Carrier shall raise bills fortnightly and submit to Parle with all the relevant mandatory receipts/acknowledgments of the goods received at the destination of Parle c) If the vehicle load is less than the minimum volume norms defined for type of vehicle. payment will be received in full only on getting Reason Certificate from concerned unit/ factory for loading less quantity d) In case if Carrier fails to furnish the Certificate , then payment will be made for the ac....
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....Said Rule will have no applicability to the present case. In any case Rule 6 (1) (x) cannot be read to be over-riding the provisions of Section 67 of the Finance Act, 1994. In case of Intercontinental Consultants and Technocrats Pvt. Ltd. [2018 (10) G.S.T.L. 401 (S.C.)] Hon'ble Supreme Court observed as follows: "21. Undoubtedly, Rule 5 of the Rules, 2006 brings within its sweep the expenses which are incurred while rendering the service and are reimbursed, that is, for which the service receiver has made the payments to the assessees. As per these Rules, these reimbursable expenses also form part of 'gross amount charged'. Therefore, the core issue is as to whether Section 67 of the Act permits the subordinate legislation to be enacted in the said manner, as done by Rule 5. As noted above, prior to April 19, 2006, i.e., in the absence of any such Rule, the valuation was to be done as per the provisions of Section 67 of the Act. 22. Section 66 of the Act is the charging Section which reads as under: "there shall be levy of tax (hereinafter referred to as the service tax) @ 12% of the value of taxable services referred to in sub-clauses of Section 65 and collected in such ma....