MANDEV TUBES Vs. COMMISSIONER OF CENTRAL EXCISE, VAPI

JUDGEMENT

(1.) AS per facts on record appellant is engaged in the manufacture of copper tubes of various sizes. As a result of audit objection conducted in August 2006, it was found that during the period January 2002 to July 2006, appellant have availed GTA services but has not paid service tax on the same. As such a view was entertained that in terms of Notification No. 36/2004 -S.T., dated 31 -12 -2004, it is the recipient of the GTA services, who is required to pay the tax, proceedings were initiated against the appellant by way of issuance of a show cause notice. The said notice was adjudicated by the Deputy Commissioner, who dropped the proceedings by observing that service tax was paid by the assessee to the transporters, who in turn have deposited the same with the Revenue. The Original Adjudicating Authority also examined the various consignment notes/LRs/bills raised by the transporters and the fact of their being registered with the service tax, department and the fact of payment of such services by the transporters. He accordingly, vacated the show cause notice.

(2.) THE said order of the Deputy Commissioner was examined by the higher authorities and notice was issued for review of the same. The Commissioner vide his impugned order passed in revision held that it was the duty of the appellant to pay the duty and accordingly confirmed the tax of Rs. 1,10,246/ - along with imposition of penalty of identical amount.

(3.) THE Commissioner in his impugned order has nowhere disputed that the service tax on the GTA services so availed by the appellant already stands paid by the transporters. He has only gone by the technical and mechanical implementation of the notification to hold that it was the responsibility of the assessee to deposit the amount. However, the fact remains that the tax amount stands deposited with the exchequer as the same was paid by the transporters, second time confirmation from the appellant is not called for. On this short ground itself I set aside the impugned order and restore the order of the Original Adjudicating Authority. Appeal allowed in above terms.