HIRA INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides.

(2.) The applicant filed this application for waiver of pre -deposit of duty of Rs. 61,15,208/ - and penalties. The applicant entered into contract from crushing of iron ore and also for loading and unloading at railway rakes and transporting the same to their business premises. The applicant paying Service Tax in respect of crushing charges as business auxiliary service. The demand is confirmed on the ground that applicant also providing service of loading and unloading and of transportation service. The contention of the applicant is that the activity of loading and unloading of transportation is given to sub -contractor who were paying Service Tax on this activity and regarding Service Tax paid on transportation charges which are paid by the applicant on behalf of the transporters, the applicant is also taking credit.

(3.) THE contention is that as the applicant is not provider of Service of loading and unloading of transportation, therefore, they are not liable to pay Service Tax, therefore, demand is not sustainable. Applicant also submitted that amount of approximately Rs. 9 lakhs is already paid by them.