Goods transport agency classification required factual verification before service tax demand could be sustained.

Service tax liability on transport services turned on whether the receipts were from individual truck owners and operators rather than a goods transport agency. The additional ground was admitted on the basis of earlier Tribunal precedent, but the factual claim had been raised for the first time in appeal and required verification. The matter was therefore sent back for reconsideration by the adjudicating authority, with a reasonable opportunity for the assessee to substantiate that the services were not provided by a goods transport agency. The impugned order was set aside and the case remanded for factual examination.

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Issues: Whether the service tax demand could be sustained when the assessee claimed that the transport services were received from individual truck owners and operators and not from a goods transport agency, warranting verification of the factual contention.

Analysis: The additional ground was permitted as it rested on an earlier Tribunal precedent. The contention that the services were provided by individual vehicle owners and operators, and not by a goods transport agency, had been raised for the first time in appeal and required factual verification. The matter therefore called for reconsideration by the adjudicating authority after giving the assessee a reasonable opportunity to substantiate the claim.

Conclusion: The impugned order was set aside and the case was remanded for verification of the assessee's contention.

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