Goods transport agency service requires a consignment note; PDS food-grain transport without one falls outside service tax.

Transportation of food grains under the Public Distribution System, undertaken under the direction and control of the District Supply Officer, was held not to amount to goods transport agency service because the essential statutory feature of a consignment note was absent. The document issued by the District Supply Officer was not a consignment note, and the contractor did not acquire lien over the goods during transit. On that basis, the activity did not satisfy the definition of goods transport agency service, and the service tax demand could not be sustained.

---

---

Issues: Whether transportation of food grains under the Public Distribution System by a contractor without issuance of a consignment note constitutes service by a goods transport agency and attracts service tax.

Analysis: The transportation was undertaken on the direction and control of the District Supply Officer in the course of the Public Distribution System. The essential statutory feature of a goods transport agency is the issuance of a consignment note. On the facts, the document issued by the District Supply Officer was not a consignment note, and the contractor did not acquire lien over the goods during transit. The activity, therefore, did not satisfy the statutory definition of goods transport agency service. The view was consistent with the earlier Tribunal decision relied upon in the order.

Conclusion: The appellant was not liable to service tax as a goods transport agency, and the demand could not be sustained.

---