In an assessee-favour ruling, the Delhi bench of Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) recently held that extended period of limitation cannot be invoked in the case of revenue neutral situation.
The bench comprising single judicial member Archana Wadhwa set aside the impugned order and provided relief to appellant in M/s Star Alloys & Chemicals Pvt. Ltd versus CCE & ST.
In instant case Assessee engaged in the production of Ferro Vanadium and Ferro Molybdenum falling under Chapter 72 of the Central Excise Tariff Act, 1985. The Central Excise Officer visited the premises of appellant and initiated show cause proceedings with regard to charging a demand of Rs. 61,199 on the basis of document recovered from the premises in respect of service tax payable by the appellant on the GTA (Goods Travel Agency) services, so received by them.
The appellant challenged the said demand by only admitting the tax to the extent of Rs.28690 and said that the rest amount of service tax liability will be discharged by the transporters themselves.
The counsel for Assessee contended that whatever service tax was payable by them on the said GTA services, the same was available as a credit to them. The counsel also added that the entire situation was revenue neutral, in which case the longer period of limitation would not apply.
Judicial member heard the recitals and admittedly opinioned that the service tax paid by the appellant on the reverse charge basis, in respect of GTA services was availed to them as credit, thus leading to revenue neutral situation.
In the light of the decision in Reliance Industries vs. CCE, Mumbai, the Appellate Tribunal held that extended period cannot be invoked in the case of revenue neutral situation and the bench ordered not to sustain demand against appellant.
Subscribe Taxscan Premium to view the Judgment
