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Calcutta High Court

Commissionerate vs M/S. Bharat Petroleum on 8 February, 2024

Author: Rajarshi Bharadwaj

Bench: Rajarshi Bharadwaj

O-325

                              CEXA/40/2019

                     IN THE HIGH COURT AT CALCUTTA
                  SPECIAL JURISDICTION (Central Excise)
                            ORIGINAL SIDE


                                      COMMISSIONER OF SERVICE TAX,
                                      KOLKATA @ COMMISSIONER OF
                                      CGST AND CX, KOLKATA SOUTH
                                      COMMISSIONERATE

                                            -Versus-

                                      M/S. BHARAT PETROLEUM
                                      CORPORATION LTD.

BEFORE :
THE HON'BLE JUSTICE SURYA PRAKASH KESARWANI
             And
THE HON'BLE JUSTICE RAJARSHI BHARADWAJ
Date : 8th February, 2024

                                                                       Appearance:
                                                         Mr. Vipul Kundalia, Adv.
                                                         Mr. Tapan Bhanja, Adv.
                                                               ...for the appellant.


1. Heard Sri Vipul Kundalia, learned senior standing counsel assisted by Mr.

   Tapan Bhanja, learned advocate for the indirect tax/appellant.

2. The revenue has filed the present appeal praying to set aside the order

   no.FO/76227/2018 dated 06.08.2018 in Service Tax Appeal No.140/2009

   passed by the Customs, Excise and Service Tax Appellate Tribunal,

   Kolkata (East Zonal Bench, Kolkata).

3. The only ground to challenge the impugned order of the Tribunal, as

   argued before us by learned counsel for the appellant; is that declaration
                                      2



  by the Goods Transport Agency in the consignment note has not been

  made so as to comply with the two conditions of Notification No.32/2004-

  ST dated 03.12.2004 that "neither credit on inputs or capital goods used

  for provision of service has been taken nor the benefit of notification

  no.12/2003-ST has been taken by them." Therefore, the exemption shall

  not be available. Learned counsel for the appellant further submits that

  the declaration separately made by the GTA shall not amount to fulfilment

  of the condition of the notification No.32/2004-ST dated 03.12.2004 since

  the circular No.B1/6/2005 - Tru dated 27.7.2005 provides a mechanism

  for making endorsement on the consignment note and not separately.

4. We have carefully considered the submission of the learned counsel for

  the appellant and we do not find any substance in it.        The aforesaid

  circular heavily relied by learned counsel for the appellant merely provides

  that if a declaration in the consignment note is made then it may suffice

  for the purpose of fulfillment of abatement by the person liable to pay

  service tax. The circular has neither narrowed down the notification in

  question nor it can narrow down it.      It is merely for the purposes of

  removing the inconvenience in availing the benefit under the notification

  that the circular provides as an option to make declaration on the

  consignment note as compliance of the condition of the notification in

  question. It does not prohibit making a declaration separately.

5. We have also perused the order in original no.47 dated 30.01.2009 passed

  by the Commissioner of Central Excise, Kolkata wherein he has
                                          3



      exhaustively dealt with the issue and found that conditions have been

      satisfied by the assessee and, accordingly, he dropped all the proceedings

      initiated vide show cause notice dated 13.04.2006. The Tribunal, by the

      impugned order, has affirmed the order in original passed by the

      Commissioner of Service Tax. The finding of fact has been recorded in the

      order in original by the Commissioner of Central Excise that conditions

      have been satisfied by the respondent herein.         The Tribunal has

concurred with the findings. The findings recorded are findings of fact based on consideration of relevant materials on record. No substantial question of law arises from the impugned order of the Tribunal in view of the fact briefly noted above and the detailed discussion and findings of facts recorded in the order in original passed by the Commissioner of Service Tax. Hence, the appeal deserves to be dismissed.

6. In view of the aforesaid, the appeal (CEXA/40/2019) is dismissed at the admission stage.

(SURYA PRAKASH KESARWANI, J.) (RAJARSHI BHARADWAJ, J.) As.