A.L. Bucheeri General Transport Est. v. CST

FINANCE ACT, 1994

--Business Auxiliary Service--Value of taxable service worked out in Show Cause Notice was not correctRemand----Where assessee put forth various arguments to support its stand that the value of taxable service worked out in Show Cause Notice was not correct, matter was remanded for de novo consideration on quantum of tax liability of assessee.--Assessee was engaged in processing of oily sludge to obtain clear crude oil for refineries. It undertook mechanical processing of sludge for which it collected processing charges from its clients which was inclusive of service tax. However, it did not pay service tax so collected and did not file any ST-3 returns. Revenue raised demand of service tax along with interest on said activity under the category of Business Auxiliary Service. Assessee contended that value of taxable service provided in Show Cause Notice was not correct. Held: Assessee put forth various arguments to support its stand that the value of taxable service worked out in Show Cause Notice was not correct. It had also sought benefit of Notification No. 8/2005-ST. In event, on quantum of tax liability, matter was remanded for de novo consideration in terms of interest of justice.