2025 (8) TMI 95

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent. They imported some machines/inputs on CIF and FOB basis. During the course of Audit, it was observed that the appellant has short paid service tax on Ocean freight, which is liable to be paid by the importer in terms of Notification No.15/2017-ST and 16/2017-ST, both dated 13.04.2017 w.e.f. 23.04.2017. Show cause notice dated 20.12.2018 proposed the demand of service tax amounting to Rs.23,60,643/-. On adjudication, the demand was reduced to Rs.7,67,085/-. The appeal filed by the appellant was rejected by the impugned order. Hence, the present appeal. 3. Heard Shri Anand Bhattacharya, Advocate for the appellant and Ms. Jaya Kumari, Authorised Representative for the respondent. 4. The submission of the learned counsel for the appellan....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s of Chapter V of the Finance Act for service tax to whole of India, and not to extraterritorial events occurring outside the land mass of India. 29. It is a settled legal position as held by a Constitution Bench of the Supreme Court in the case of GVK Industries Ltd. v. Income Tax Officer, 2017 (48) S.1.R. 177 (S.C.) that the Parliament has power to enact laws for extraterritorial events subject to three conditions as referred to in para 41 of the judgement, but the Executives having delegated powers under any Act of the Parliament do not possess any jurisdiction to make Rules or Notifications for taxing extraterritorial events. In the present case, the Parliament has restricted the provisions of Chapter-V of the Finance Act in respect o....