TaxTMI 
TaxTMI 
2018 (3) TMI 1281
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by a common order. 3. The relevant facts that arise for consideration are the appellant herein during the period in question i.e. 2007-08 to 2014-15 is alleged to have not discharged the service tax liability under the category of goods transport agency services in relation to providing cargo handling services to their client. It is alleged in the show-cause notice that the appellant herein had engaged vehicles/trucks from various transport organisations and were sent to their customers for transportation of goods. Appellant paid the transport cost but hired them the vehicles/lorries. It is the case of the Revenue that appellant being The person who had paid the transporters for the vehicles given to them, is required to discharge the ser....
X X X X Extracts X X X X
X X X X Extracts X X X X
....chanism as a recipient of GTA services, in support of which he produces documents like the bills raised by them in their appeal memoranda. He would also submit that similar issue came up before the Bench in the case of Essar Logistics Ltd., Vs CCE Surat [2014(33) STR 588(T-Ahmd)] and in the case of MSPL Ltd Vs CCE Belgaum [2009(13) STR 554 (Tri-Bang)] wherein it was held that liability to pay service tax is cast upon the person who is paying the freight as per the provisions. 4. Learned A.R. on the other hand submits that the appellant has engaged the services of transporters but rented them the vehicles which are utilised by appellant for transportation of the goods of their clients. He would submit that appellants having paid such transp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppellant's clients discharged the service tax liability as consignor or as a consignee., On this factual matrix, we have to come to a conclusion whether appellant is required to discharge the service tax liability under the category of goods transport agency or otherwise. 7. The definition of a person liable to discharge service tax liability under goods transport agency is under reverse charge mechanism and has been ensigned under Section 65(50)(b) of the Finance Act 1994 read with the said Rules. In order to appreciate the correct position of the person liable for paying the service tax under goods transport agency it is pertinent to reproduce the said rules. Rule 2(1)(d)(v) of Service Tax Rules 1994 defines "person liable for pay....
X X X X Extracts X X X X
X X X X Extracts X X X X
....raised by the lower authorities and confirmed cannot be upheld as identical issue came up before the Tribunal in the case of Essar Logistics Ltd Vs CCE Surat [2014(33) STR 588(T-Ahm)] wherein in paragraph- 9, the Bench laid down the ratio. "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 compan....