Goods Transport Agency tax liability turns on who pays freight, not on transport in the assessee's own vehicle.

Service tax under the Goods Transport Agency category was held inapplicable where the assessee transported gas cylinders in its own vehicle and collected freight from the buyer. Liability under Rule 2(1)(d)(v) of the Service Tax Rules, 1994 attaches to the person who pays or is liable to pay the freight, and on the stated facts the buyer, not the assessee, was the freight payer. The prior view taken in the assessee's own case was followed, and the freight collected for such transport was not subjected to service tax.

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Issues: Whether the assessee, who transported gas cylinders in its own vehicle and collected freight from the buyer, was liable to pay service tax under the category of Goods Transport Agency.

Analysis: The liability under Rule 2(1)(d)(v) of the Service Tax Rules, 1994 is cast on the person who pays or is liable to pay the freight. The buyer, and not the assessee, was the person who actually paid the freight. The same issue had already been decided in the assessee's own case in the same manner, and that view was followed.

Conclusion: The assessee had no liability to pay service tax on the freight collected for transportation in its own vehicle. The appeal was allowed with consequential relief.

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