MANDEV TUBES Vs. COMMISSIONER OF CENTRAL EXCISE, VAPI

JUDGEMENT

(1.) A demand for service tax of Rs. 1,10,246/ - with interest thereon has been confirmed against the appellants and a penalty equal to the service tax amount has been imposed under Section 78 of the Finance Act 1994. Hence the appeal.

(2.) THE appellants in their written submission submitted that the service tax amount demanded from that has been already been paid by the transporters but the demand has been confirmed on the ground that as per the notification, recipient of the service is liable to pay the tax. They have also submitted that in the circular issued by CBEC vide F. No. 341/18/2004 TRU(PT) dated 17 -12 -2004 it has been clarified that if service tax due on transportation of a consignment has been paid service tax should not be charged for the same amount from any other person to avoid double taxation. They have also submitted that Mandev Tubes against which the demand has been confirmed is no longer in existence. In view of the above submissions a prima facie case has been made out by the appellants in their favour and accordingly pre -deposit of the service tax demanded and penalty etc. under Section 35F is waved and stay petition allowed. (Pronounced in Court)