AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 182
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....sport Agency Service. They were availing the facility of CENVAT credit of service tax paid on input services and utilized the same for paying service tax for the output service. The service tax on GTA services were paid by the appellant after availing the abatement of 75% of the total amount received by them. 2. On scrutiny of their accounts, it was noticed that the appellant had paid service tax under GTA on transportation income minus bulk income. It was observed that they were following the practice of hiring vehicle for transport of goods and paying hire charges to the vehicle owners as per the agreement entered into between them and the owners of the vehicles. Subsequently, the hired vehicles were used by the appellant to render GTA s....
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....mer is not interest as to whether it would actually be executed by the appellant using its own trucks or using trucks of third parties. The appellant uses their own trucks as well as in case of necessity hires the vehicles owned by others in order to provide the services of transportation of goods to their customers. In cases where the appellant has hired the trucks of third parties to transport the goods, they have collected margin of profit over and above the hire charges which is now sought to be brought under BAS by the department. The department has relied upon sub-clause (iv) of Section 65(19) states hat procurement of goods or services which are inputs for client would fall under the category of BAS. In the present case, the appellan....
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....ptember 2006 has been issued only in 2011. The demand is therefore time-barred. It is also submitted by him that the adjudicating authority has imposed penalty both under sections 76 and 78 of the Finance Act, 1994, which is against the provisions of law as well as settled decisions. Though the appellants were under bonafide belief that the services fall under GTA for which they have discharged service tax. Therefore the provisions of section 80 would be applicable in the alternative to set aside the penalty also. He also relied upon the decision in the case of Bax Global India Ltd. Vs. Commissioner of Service Tax - 2008 (9) STR 412 to canvas the point that if any profit has been made in respect of other activity they cannot be subject to l....
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....ved extra amount from the customers over and above the hiring charges shown in the agreement entered by them with the vehicle owners. Further, the appellants have discharged service tax under the category of GTA by including this extra amount in the taxable value under the category of GTA service after availing the abatement. The case of the department to demand the amount is that this extra amount would fall under BAS. For better appreciation, the definition of BAS as it stood during the relevant period under section 65(19) is reproduced as under:- Business Auxiliary Service means any service in relation to - (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing ....
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....ollection or payment for such goods or services; or (iv) Undertakes any activities relating to such sale or purchase of such goods or services; (b) "excisable goods" has the meaning assigned to it in clause (d) of section 2 of the Central Excise Act, 1944 (1 of 1944); (c) "manufacture' has the meaning assigned to it in clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944)" 9. The department has relied upon sub-clause (iv) of the above definition to allege that the extra amount collected is in the nature of commission received by the appellant for procurement of goods or services which are inputs for their customers. On perusal of the facts, we find that the customers to whom the appellant has provided GTA services h....