TaxTMI 
TaxTMI 
2019 (10) TMI 1416
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.... Act 1994. In respect of some services, the service tax is payable by the "service recipient" instead of service provider, under Section 66A of the Finance Act, 1994. Among these services is the service of Goods Transport Agency and the service recipient has to pay service tax on the value of services received. 3. The appellant procures sugarcane from farmers who deliver it to their factory. The appellant pays the farmers a fixed amount per tonne of sugarcane. If the farmer is located beyond 10 K.M. from the factory, they pay additional amount of Rs. 2/- per quintal and if he is located beyond 20 K.M, they pay an amount of Rs. 4/- per quintal as "Transport Subsidy". It is the case of the Revenue that "Transport Subsidy" paid by the appellant to the farmers is an amount paid for the service of Goods Transport Agency rendered by the farmers to the appellant and hence is chargeable to service tax under section 66A, read with Section 65(105)(zzp) of the Finance Act, 1994. Accordingly, show cause notices were issued to the appellant for the periods 2007-08 to 2011-12 and 2012-13, both of which were decided by the original authority by a common order dated 16.02.2015. He confirmed the d....
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....f service tax in accordance with the notification No. 34/2004, dt. 3.12.2004 for the period upto 30.06.2012 and by Notification No. 25/2012, dated 20.06.2012 (entry No. 21(a) for the remaining period. 8. The appellant had always provided to the department whatever information was sought and therefore the allegation of intention to evade payment of duty to invoke extended period of limitation and imposition of penalty cannot be sustained. 9. Per contra, Ld. DR reiterates the findings of the lower authority. 10. We have considered the arguments on both sides and perused the records. The facts are not in dispute that the appellant procures sugarcane from the farmers and pays an amount per tonne of sugarcane. The sugarcane is delivered by the farmers to the factory in their own transport vehicles such as bullock carts, tractors etc. The sale takes place at the factory. If the farmer is located far from the factory (beyond 10 K.M or beyond 20 K.M), evidently, he will have to incur some cost towards transporting his own sugarcane to the factory. In addition to paying for the sugarcane, the appellant is also subsidising the cost of such transportation at some fixed rates. We, therefore....
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....ny person by a goods transport agency in relation to transport of goods by road in a goods carriage". "Goods carriage" has the meaning assigned to it in section 2(14) of the Motor Vehicles Act, 1988 i.e., it must be motor vehicle constructed or adapted for use solely for the carriage of goods or a motor vehicle not so constructed or adapted when used for carriage of goods. The goods transport agency has to be "any person who provides service in relation to transport of goods by road and issues a consignment note". We find that the goods carriage must be a motor vehicle, either constructed or adapted for use solely for the carriage of goods or a motor vehicle constructed or adapted when used for carriage of goods. If the farmer is transporting sugarcane in bullock cart, then no motor vehicle is involved. If he brings his sugarcane in tractor trolley, the tractor is not used solely for carriage of goods but the trolley helps in carriage of goods. To that extent, if the goods are carried in tractor trolleys, they fall within the meaning of "goods carriage". However, the service can be taxed only if the person renders the service is "goods transport agency" i.e., provides service in re....
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..... 35/2004-S.T., dated 3-12-2004, on the payments made by them to transporters against the fortnightly bills being presented by them. While admittedly no consignment notes or GRs have been issued by the transports, according to the Department the Transporter's bills are in the nature of the consignment notes. Under Rule 4B of the Service Tax Rules, 1994, "any Goods Transport Agency which provide service in relation to transport of goods by road in a goods carriage 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....