GTA service tax liability depends on consignee status; respondent was not liable where job workers were the consignees.

Service tax on goods transport agency services was not payable by the respondent because the consignment notes showed the goods were supplied to job workers as consignees. The respondent did not fall within the category of consignee or consignor for the liability rule, so freight-related tax could not be fastened on it. The liability had in any event been discharged by the job workers as consignees, making the demand unsustainable.

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Issues: Whether the respondent was liable to pay service tax on goods transport agency service as the person liable to pay freight in respect of consignments supplied to job workers.

Analysis: The consignment notes showed that the goods were supplied to the job workers as consignees. The respondent did not fall within the category of consignee for the purpose of the liability rule, and it was not the consignor. The freight-related service tax was therefore not cast on the respondent. The tax liability was also found to have been discharged by the job workers as consignees.

Conclusion: The respondent was not liable to pay service tax on the goods transport agency service, and the demand was not sustainable.

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