Order Date – 04 December 2023

Parties: M/s RGI Meditech Pvt. Ltd. Vs Commissioner of Central Excise & Service Tax, Noida

Facts –

• The Appellant, M/s RGI Meditech Pvt. Ltd., being pointed out in during audit paid service tax on the ocean freight provided to the foreign supplier . Later they came to know that there no service tax liability on ocean freight. They filed a refund application or refund of service tax wrongly paid on ocean freight under reverse charge mechanism on 04.12.2018.
• A show cause notice dated 17.07.2019 was issued proposing to reject the refund on the ground that since bill of entry was filed in the name of the Appellant, hence the Appellant is the service recipient and accordingly the Appellant is liable to pay service tax in terms of Circular No.206/4/2017–ST dated 13.04.2017.

Issue –

• Whether the appellant is liable to discharge service tax on ocean freight?

Order –

• The Tribunal observed that in the view of decision of  Hon’ble Gujarat High Court in SAL Steel Ltd. v. Union of India (2020) 37 GSTL 1, he issue involved in the present case is no more res-integra and the Appellant cannot be fastened with any service tax liability on ocean freight.
• Further, the Appellant has specifically pleaded in its reply to show cause notice and appeal memo submitted before the Appellate authority that the goods were imported under C.I.F contracts. This categorical pleading of the Appellant has not been disputed by the revenue in the adjudication order as well as the impugned order. This being the case, the present case is squarely covered by the dicta laid down in SAL Steel Ltd. and accordingly it is held that the Appellant is not liable to pay service tax on ocean freight.
• The appeal allowed.