2016 (12) TMI 438

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....r the appellant is required to pay Service Tax on Goods Transport Services during the period from 01.04.2005 to 31.10.2006 as service recipient under reverse charge mechanism, interest thereof and whether the penalty is imposable. Both the lower authorities has came to a conclusion that appellant/assessee is liable to discharged the Service Tax liability with interest but the first appellate authority has set aside the penalty imposed by invoking the provision of Section 80 of the Finance Act, 1994. Appellant/assessee as well as Revenue are in appeal against such order. 3. Heard both sides and perused the records. 4. Learned Counsel on behalf of the appellant/assessee submits that appellant is not required to discharge the Service Tax....

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....d the inward freight charges to individual truck owner, who transported sugarcane from farmer to their factory. It is also undisputed there was no consignment notes issued by the said truck owners. On the above factual matrix, we find that the learned Counsel the appellant/assessee has correctly relied upon the decision of Tribunal in the case of Nandganj Sihori Sugar Co. Ltd. (supra). The ratio of the said judgment is in paragraph no. 6 which we respectfully reproduce. "6. In terms of Section 65(105)(zzp), the taxable service means any service provided to a customer, by a Goods Transport Agency, in relation to transport of goods by road in a goods carriage. In terms of Section 65(50a) ibid Goods Carriage has the meaning assigned t....

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....le is not the service provided by a Goods Transport Agency. A Goods Transport Agency in terms of its definition under Section 65(50b) provides service in relation to transportation of goods under a consignment note which should have the particulars as prescribed in explanation to Rule 4B. In the present case admittedly no consignment notes have been issued. The fortnightly bills cannot be treated as consignment notes, as a consignment note issued by Goods Transport Agency represent its liability to transport the consignment handed over to it to the destination and deliver the same to the consignee and merely a bill issued for transportation of goods cannot be treated as Consignment Note. The fact of non-issue of consignment to M/s. Nandganj....