2022 (6) TMI 914

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.... using transport services. The payment to the transporters is made by the Respondent from the amounts adjusted against the price of sugarcane payable to the suppliers/farmers at the minimum support price of the sugarcane in terms of clause 2(g) of the Sugarcane Control Order, 1966, which is for supply of sugar cane at the factory gate. Basis the above, a Show Cause Notice dated 16.04.2010 was issued to the Respondent for non payment of service tax on the freight charges paid by them to the transporters under the GTA service head for the period from January 2005 to March 2010. The same was adjudicated by the Ld. Adjudicating authority vide Order-in-Original dated 07.06.2011 and the demand along with interest and penalty was dropped on the gr....

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....in clause 14 of Section 2 of the Motor Vehicle Act, 1988. In terms of Section 65(50b), 'Goods Transport Agency' means any commercial concern which provides service in relation to transport of goods by road and issues consignment note, by whatever name called. The Service Tax has been demanded from the Appellants as service recipient under Rule 2(l)(d)(v) of the Service Tax Act, 1994 read with Notification No. 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 ....

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.... is admitted in the show cause notice itself. In case of M/s. Bajpur though it is not mentioned in the show cause notice, this plea has been made by the Appellant and the same has not been refuted. The transportation of goods by individual truck owners without issue of consignment note, GR's &billties, etc. as prescribed in Rule 4B of the Service Tax Rules, would be simple transportation and not the service of Goods Transport Agency which involves not only undertaking the transportation of the goods handed over to it but also undertaking delivery of the goods to the consignee and also temporary storage of the goods till delivery. When the transports did not issue consignment notes or GRs or Challans or any documents containing the particula....