COMMISSIONER OF SERVICE TAX Vs. BULK CEMENT LTD.

JUDGEMENT

(1.) THERE are cross appeals each by the Revenue and the assessee, arising from the common Order -in -Original 32/STC/BR/08 -09, dated 4 -11 -2008 passed by the Commissioner of Service Tax, Mumbai dropping the demand of Rs. 3,06,21,823/ - and confirming the demand of Rs. 12,65,105/ - with penalties against the assessee. As such both the appeals are taken up together for consideration and disposal. The brief facts of the case are as follows: - -

(2.) THE ld. AR submits that the adjudicating authority has erred in dropping the demand in respect of Freight rebate, Primary and Secondary Freight reimbursement charges since the respondent -assessee had used their wagons for providing C&F services and considering the definition of C&F services the amount recovered by the respondent for providing wagons for transportation of goods is includible in the assessable value.

(3.) THE ld. counsel for the respondent submits that the ld. Commissioner has rightly dropped the demand of Rs. 3,06,21,823/ -. At the outset, he highlighted that while the Revenue is objecting to dropping of demand for all charges i.e. Freight rebate, Primary and Secondary Freight reimbursement charges, there is no appeal filed for dropping of demand for secondary freight reimbursement. Therefore, dispute only with respect to Freight rebate and Primary Freight reimbursement must be considered.