TaxTMI 
TaxTMI 
2014 (6) TMI 763
X X X X Extracts X X X X
X X X X Extracts X X X X
....ignee, on the basis of lorry receipts. After a detailed investigation and recording of various statement, show cause notice was issued to appellant directing them show cause as to why Service Tax liability under GTA services be not demanded from them, interest thereof and also why penalties be not imposed on them. The appellant herein defended their action of non-discharge of Service Tax liability in the reply filed to the show cause notice, on the ground that the appellant herein is a GTA service provider and as per the provisions of Service Tax Rules, Service Tax liability on the services received from GTA services would be on the consignor or consignee, as the case may be and the issue is barred by limitation. The adjudicating authority after following the due process of law, confirmed the demands raised in the show cause notice, also demanded the interest on the said amount and imposed penalties under various sections of the Finance Act, 1994. 3. Ld. counsel appearing on behalf of the appellant would submit that it is undisputed that the appellant is providing GTA services. It is his submission that the department has mis-interpreted the provision of Rules 2(1)(d)(v), i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ice Tax on such services to the Government; though it may be mentioned on the consignment note that consignee is liable to pay Service Tax. It is his submission that the appellant herein has to ensure that the person liable for paying Service Tax is the person covered under 2(1)(d)(v) of the Service Tax Rules, 1994 or he has to discharge the service tax liability. 5. We have considered the submissions made at length by both sides and perused the records. 6. The issue involved in this case is whether the Service Tax is recoverable from the appellant on the freight charges as a Goods Transport Agency when the same has not been paid by the consignor and paid by the consignee who are franchisees/customers. 7. Undisputed facts is that appellant herein is a goods transport agency and providing services of transportation of goods from EOL to the various terminals hired by EOL. It is also undisputed that appellant herein has indicated on the consignment note through their sub-contractor that "the person liable to pay service tax is the consignee". It is also undisputed that the consignee who had received the goods have paid the freight charges to appellant. 8.&em....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sp; any co-operative society established by or under any law; (f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; or (g) any body corporate established, or a partnership firm registered, by or under any law, any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage;" It can be seen from the above reproduced that appellant falls under the category of goods transport agency as he issues consignment notes, and also provides services. 9. It has also to be seen that under Rule 2(1)(d)(v) of Service Tax Rules, 1994 as reproduced hereinabove defines person liable for paying the Service Tax under the provision of Section 68(2) of the Finance Act, 1994. It would mean that the entities as indicated under the said Rule 2(1)(d)(v) are consignor or consignee, are liable to pay the freight and hence are liable to discharge the service tax liability. In the case in hand before us it is undisputed that EOL is a refinery and a factory and company established a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y to determine the liability of the appellants in the light of provisions of Section 68(2) of the Finance Act read with Rule 2(1)(d)(v) of Service Tax Rules, 1994. 5. The learned Advocate made several submissions. The gist of them are given below : (a) The appellants use their own vehicles. They are the owners of the vehicle and they are not the Goods Transport Agency. The service provided by a Goods Transport Agent to a customer in relation to transportation of goods is a taxable service. The transportation of goods by road per se is not a taxable service. There must be service provided to a customer by a goods transport agent in relation to transportation of goods by road. The measure of the tax is a freight charges paid, but the measure of tax cannot alter the incidence or scope and nature of levy of service tax. The appellants being manufacturer consignor of goods and owner of vehicles cannot provide to themselves as customer the service in relation to transportation of goods. The appellants being the owners of the motor vehicles or goods carriage cannot be said to be their own agents providing the services of GTA to themselves as customers in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....means the person who pays or is liable to pay the freight. Rule 2(1)(d)(v) is reproduced herein below : (v) in relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is,- (a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948); (b) any company formed or registered under the Companies Act, 1956 (1 of 1956); (c) any corporation established by or under any law; (d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; (e) any co-operative society established by or under any law; (f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; or (g) any body corporate established, or a partnership firm registered, by or under any law, any person who pays or is liable t....