Order date – 05 January 2023

Parties: M/s. Waymark Logistics Vs Principal Commissioner of GST & Central Excise

Facts –

• The Appellants, M/s. Waymark Logistics are registered with the Service Tax Department for rendering CHA services.
• It was noticed that the appellant did not discharge service tax liability for the period April 2008 to December 2008 through M/s. Trinity Clearing and Shipping Agencies, Chennai had collected the service tax using the appellant’s registration number. M/s. Trinity Clearing and Shipping Agencies, Chennai had registered themselves with the Service Tax Department for providing Business Support Service.
• Show Cause Notice dated 12.4.2019 was issued to the appellant proposing to demand service tax along with interest for the period April 2008 to December 2008 and for imposing penalties.

Issue –

• Whether the appellant is liable to pay service tax?

Order –

• The Tribunal held that the appellant cannot sublet their CHA license or allow M/s. Trinity Clearing and Shipping Agencies, Chennai to use their service provider registration number, the facts reveal that service tax in regard to the impugned service has been already paid to the Government.
• It was observed from the letter dated 3.1.2023 that M/s. Trinity Clearing and Shipping Agencies; Chennai has paid service tax on impugned service. The liability of service tax on the impugned services having been discharged, hence the demand cannot be confirmed.
• Accordingly the appeal is allowed.