TaxTMI 
TaxTMI 
2026 (7) TMI 646
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....ge Mechanism with respect of ocean freight paid for the goods imported has been set aside. 1.1 The facts, succinctly, are that the appellant is engaged in manufacture of cement and is also holding service tax registration for rendering several taxable services. The appellant is also claiming the Cenvat credit on inputs and input services under Cenvat Credit Rules, 2004. During the course of audit of their record, it was observed that the appellant had imported spare parts etc. through foreign shipping lines under terms of import as FOB, CIF and CF during the period 01.06.2016 to 30.06.2017. Department alleged that the appellant being the service recipient while importing the goods under FOB, hence was required to pay service tax under Re....
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....1994 empowers the Central Government to collect Service Tax even if the place of provision of service in terms of Place of Provision of Services Rules, 2012, is in taxable territory even in cases where the service is partially performed in India. Further, in case of All India Federation of Tax Practitioners Vs. Union of India [2007] 7 SCC 527, the Hon'ble Supreme Court has declared that Service Tax is a destination based consumption tax and thus the relevance of the place where the services are rendered or consumed assumes critical importance for sustaining the levy of service tax. In this case of Transportation of Goods by a vessel from a place outside India upto Indian Port i.e., land mass of the country and the service being finally cons....
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....ht into force from April 23, 2017. By virtue of Notification No. 15/2017-ST, the Central Government has submitted certain explanations in the original Notification No. 30/2012-ST, dated June 20, 2012. Explanation V so substituted/inserted vide this Notification No. 15- 2017-ST provides that the importer as defined under Section 2(26) of the Customs Act shall be the person liable to pay service tax in respect of services provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the Custom station of clearance in India. By virtue of Explanation V so inserted, it would mean that the importer of goods would be liable for payin....
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....wise allowed vide Sl. No. 10 of Notification No. 26/2012-ST. 5.2 The appellant herein since has imported on FOB/CIF basis but has denied the service tax liability o on ocean freight for the reason that he had not received the service of transportation of goods in a vessel from the owner/operator of such vessel. In the impugned order, the Commissioner (Appeals) has relied upon the M/s. SAL Steel Ltd. (surpa) observing the following findings therein: "58. In view of the aforesaid discussion, the writ application succeeds and is hereby allowed. The Notification Nos. 15/2017-ST and 16/2017 making Rule 2(1)(d)(EEC) and Rule 6(7CA) of the Service Tax Rules and inserting Explanation-V to reverse charge Notification No.30/2012-ST is str....