2015 (10) TMI 627

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....004-05 and 2005-06, it was noticed that appellant had paid inward freight. Revenue authorities entertained a belief that from 01.01.2005 as per Notification no. 35/2004-S.T. the consignee or the consignor covered under any of the seven categories mentioned in notification was required to discharge service tax under the category of Goods Transportation Agency; appellant being a factory had failed to pay service tax on the said inward freight by them. 3. Accordingly, a show-cause notice was issued for recovery of the service tax, interest thereof and also proposing for imposing penalties. Adjudicating authority after following the due process of law confirmed the demands with interest and also imposed penalties. Appeal preferred against su....

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....s and perusal of the records, we find that the issue involved in this case is regarding service tax liability on an amount paid during the financial year 2004-05 and 2005-06 recorded as paid towards inward freight. Appellant herein is a sugar factory and is covered under the Notification 35/2004-S.T. as one of the categorized entities who has to discharge the service tax liability under the Goods Transport Agency on receipt of Services of Transport Agency. 7. On deeper perusal of the records, we find that appellant has been taking a stand that the amounts paid by them as inward freight was paid to owners of individual trucks and not to Goods Transport Agency. It is seen from the records this stand of the appellant is not controverted by ....

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....e shall issue a consignment note to the customer. In term of Explanation to Rule 4B, 'Consignment Note' means - a document issued by Goods Transport Agency against the receipt of goods for the purpose of its transport by road in a goods carriage, which is serially numbered and contains the name of consignor and consignee, registration number of the goods carriage in which goods are transported, details of goods transported, details of the place of origin and destination, person liable for paying Service Tax whether consignor, consignee or Goods Transport Agency. Thus mere transportation of the goods in a Motor Vehicle is not the service provided by a Goods Transport Agency. A Goods Transport Agency in terms of its definition under Secti....