TaxTMI 
TaxTMI 
2012 (10) TMI 159
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....transported from the collection centre to the factory, service of truck operators, Bullock Carts, Tractors are availed. When the payment of sugar cane is made to farmers, deduction is made from their bills towards transport cost etc. and farmer who bears the transport cost, the appellant does not bear such cost in respect of their supplies. The sugar factories do not engage goods transport agency to provide them service for which individual truck owners provide service of transportation. They are not transport agencies. Since they are not transport agencies, the requirement of law that consignment note should be issued by transport agency is not required. 3. It was also submitted that had chini mills engaged GTA service providers to avail transport service, they would have certainly taken benefit of cenvat credit in respect of service tax paid for availing GTA service. In almost all cases transport cost incurred by farmers to bring the collected sugar cane to factory does not exceed Rs. 1500/- for which there shall be no levy following the spirit to Notification No.34/04. The adjudicating authority disregarded the requirement of Notification No.32/04 which grants abatement to th....
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....ved is common and nothing alien. 8. We have noticed the fact from the batch of appeal and the single appeal that there was movement of sugar cane by transport from sugar cane collection centres to factory. Crux of the issue calling for a decision is whether such a transport is provided by goods transport agency and is liable to tax. 9. There is no dispute by either side about availing services of different modes of transport for movement of sugar cane from centre to the factory and those were trucks, tractors and bullock carts. Therefore, we are not able to agree with Shri Jaiswal, learned DR as to contents of the report that came from the jurisdictional authority stating that consignment note for each truck was issued, which was never been confronted to any of the assessees prior to this date. Since the fact is on the very narrow campus, we looked into the law leading these facts. It is not disputed that goods transport agency service falls under the taxing entry 65 (105) (zzp) of Finance Act 1994 which reads as under:- 65(105) "taxable service" means any service provided or to be provided - (zzp) to a customer, by a goods transport agency, in relation to transport of ....
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..... 12. Combined reading of the statutory provision with the Notification aforesaid throw light that when service is provided to a customer by a goods transport agency in relation to transport of goods by road in a goods carriage that shall be liable to service tax. Of course the liability may be borne either by the consignor or by the consignee of the goods. Section 65(50b) requires goods transport agency to be a commercial concern and if that concern provides service in relation to transport of goods by road and issues consignment notes by whatever name called such an agency is brought under the fold of law. The term "consignment notes" having been defined by Rule 4B it is to be read together with section 65 (50b) of Finance Act 1994. According to Rule 4B goods transport agency which should necessarily satisfy the requirement of section 65 (50b) if that agency provide service in relation to transport of goods by road in goods carriage and shall issue consignment note to the customer. Issuance of such consignment note is dispensed in terms of section 93 where the service is provided under that section. The explanation to the rule brings out what should be contents to the consignm....
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....o suggest that there was a consignor and consignee relationship and entire consignment has travelled on road. 15. So far as the exemption aspect is concerned which is provided by two different notifications the small transporters certainly shall get the benefit of Notification No.34/04-ST dated 3.12.04. Whenever the gross amount charged on consignments transported in a goods carriage does not exceed Rs. 1500/- that is exempted. Similarly, when the gross amount charged on an individual consignment transported in a goods carriage does not exceed Rs. 750/- that shall also be exempted. Interpreting the Notifications, it can be said that the sugar cane transported through goods carriage from sugar cane centre to the factory either may be in different consignments or may be in one consignment. The assessees are required to explain their proper defence because legislature did not intend the small transporter to be brought under the fold of law. Appreciating the argument in the bar that individual transporters are not meant to be brought to the ambit of law the Budget Speech of Hon'ble Finance Minister makes that clear. This is also further supported by use of the term "commercial c....