Goods Transport Agency levy requires a consignment note; hired trucks without one fall outside service tax and limitation bars the demand.

Service tax under the goods transport agency category applies only where the transporter issues a consignment note and assumes the statutory character of a GTA; mere hiring of trucks to carry goods, without a consignment note, does not satisfy that definition and the freight demand fails. The extended limitation period cannot be invoked absent suppression or misdeclaration, particularly where the relevant figures had already been audited before the notice was issued. On these grounds, the demand was unsustainable and the assessee obtained consequential relief.

---

---

Issues: (i) Whether service tax was payable under reverse charge on freight incurred for transportation of iron ore fines from the mines to the port of export when the transport was undertaken by individual trucks and no consignment note was issued. (ii) Whether the demand was barred by limitation.

Issue (i): Whether service tax was payable under reverse charge on freight incurred for transportation of iron ore fines from the mines to the port of export when the transport was undertaken by individual trucks and no consignment note was issued.

Analysis: Liability under the GTA category depends on the existence of a goods transport agency, which in turn requires the issuance of a consignment note. Mere hiring of trucks for transport of goods, without an agency function and without a consignment note, does not satisfy the statutory definition. The exemption/refund framework under Notification No. 41/2007-ST does not change the basic requirement that the tax, if at all attracted, must arise only where the transport is by a GTA within the meaning of the statute and rules.

Conclusion: The demand on freight charges was not sustainable, and the issue was decided in favour of the assessee.

Issue (ii): Whether the demand was barred by limitation.

Analysis: The relevant figures had already been audited in 2009, while the show-cause notice was issued only in 2013. In the absence of suppression of facts or misdeclaration, the extended period could not be invoked against the assessee.

Conclusion: The demand was barred by limitation, and the issue was decided in favour of the assessee.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief in law.

Ratio Decidendi: Service tax on road transport is attracted under the GTA category only when the transporter issues a consignment note and assumes the statutory character of a goods transport agency; where goods are merely carried by hired trucks without such consignment note, the levy fails, and an otherwise time-barred demand cannot be sustained.

---