Own-goods transportation without consignment notes does not amount to goods transport agency service under service tax law.

Transportation of an assessee's own goods in its own truck and in a hired vehicle on a per-day basis did not amount to goods transport agency service, because the statutory definition required carriage of goods for another person and issuance of a consignment note. Rule 4B treated a consignment note as a document issued against receipt of goods for transport, and section 65(50B) applied only where a person provided transport service by road in that manner. As the assessee transported its own goods, bore the fuel and related expenses, and did not receive goods from others for carriage, the service tax demand was unsustainable.

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Issues: Whether transportation of the assessee's own goods in its own truck and in a hired truck, without receipt of goods from others and without issuance of consignment notes in the statutory sense, amounted to taxable goods transport agency service.

Analysis: Rule 4B of the Service Tax Rules, 1994 defined a consignment note as a document issued by a goods transport agency against receipt of goods for transport, containing prescribed particulars. Section 65(50B) of the Finance Act, 1994 covered a person providing service in relation to transport of goods by road who issues consignment notes. The goods were transported by the assessee itself in its own vehicle and in a vehicle hired on per-day basis, with fuel and related expenses borne by the assessee. Since the assessee was transporting its own goods and was not receiving goods from any other person for carriage, it was not rendering service to another, and the statutory requirement of a goods transport agency issuing consignment notes was not satisfied.

Conclusion: The transportation activity did not fall within goods transport agency service and the service tax demand was unsustainable.

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