Back
CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
VICE-PRESIDENT, MS. JYOTI BALASUNDARAM
Perambalur Sugar Mills Ltd. -Appellant
Versus
Commissioner of Central Excise, Trichy -Respondent
ST/STAY/32 OF 2011
Decided On : 15-04-2011
N. Viswanathan,C. Rangaraju
1. The application for waiver of pre-deposit of Rs. 1,14,495/- together with interest and penalty of Rs. 2,000/- is allowed as prima facie the assessees are entitled to avail CENVAT credit (which has been objected to by the department) as they have paid the service tax under the category of GTA service for cargo handling. Now, I take up the appeal itself for final disposal along with the appeal of the revenue.
2. The learned counsel for the assessees is correct in submitting that in the light of the CBEC’s Circular F.No: B-11/1/2002-TRU, dated 1-8-2002, individuals undertaking the activity of loading or unloading of cargo would not be liable to service tax as ‘cargo handling agency’. In this case, the demand has been raised on the ground that what was rendered was cargo handling service by the individuals and credit was inadmissible as it was taken without any prescribed documents. Once the activity itself has been held not leviable to service tax and the assessees having paid at the insistence of the department, they are entitled to credit of tax paid by them. I, therefore, set aside the demand of Rs. 1,14,495/- together with interest and penalty, covering the period Nov. 08 to May, 2009 and allow Appeal No. ST/41/2011. Revenue’s appeal is against setting aside of the extended period of limitation by the lower appellate authority. In the light of the decision in assessee’s appeal. Revenue’s appeal is dismissed.
3. In the result. Appeal No. ST/41/2011 is allowed and Appeal No. E/34/2011 is dismissed.
