TaxTMI 
TaxTMI 
2023 (9) TMI 648
X X X X Extracts X X X X
X X X X Extracts X X X X
.... demand of Rs. 1,18,63,098/- as service tax on Goods Transport Agency Service for the period 2007-2008 to 2011-2012 and also imposed penalties on the appellant. 2. The appellant is a subsidiary of M/s OJSO Power Machines, Russia and is engaged in providing services like Erection and Commissioning of turbine generators, Management Maintenance and Repair Services, Consulting Engineer Services, etc. in relation to power generation plants. It was registered with the service tax department for providing Erection, Commissioning and Installation Services, Management Maintenance and Repair Services with the service tax department. It was also registered as a service recipient under the category "Transport of Goods by Road" Service under section ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....such service shall be liable to pay service tax. ......." 3. The appellant had entered into contracts with National Thermal Power Corporation Limited [NTPC] for setting up Super Thermal Power Projects and each such contract was split into three sub-contracts as follows :- (i) Contract under which NPTC imported certain equipment from related parties of the appellant located in Russia ; (ii) Contract under which the appellant supplied indigenous plant and equipment and supplies to NTPC; (iii) Contract under which the appellant performed various services in relation to the equipment obtained under the first two contracts. Under this contract, the appellant received service charges on which it paid service tax. As ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2 (1) (d) (i) (B) where the service is provided by Goods Transport Agency to anybody corporate established by or under law, the recipient of service is liable to pay service tax and not the service provider and NTPC was created under the law ; (c) After the introduction of the Negative List regime in 2012, Goods Transport Agency Services were brought under negative list under section 66D (p) and, therefore, no service tax was chargeable at any rate after 2012 ; (d) There are no grounds for invoking extended period of limitation ; (e) Since the demand itself is not sustainable, the confirmation of interest cannot be sustained ; (f) Penalty is not imposable even if the case is decided against the appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Revenue, this collection of 2% towards transportation amounts to providing Goods Transport Agency Service. According to the appellant, it was not providing any Goods Transport Agency Service and in fact it had not issued any consignment note, as required under section 65 (50b) according to which Goods Transport Agency means "any person who provides service in relation to transportation of goods by road and issues consignment note, by whatever name called". Nothing in the records before us show that the appellant was providing Goods Transport Agency Service to M/s NTPC. The person liable to pay service tax in case of Goods Transport Agency Service is the one who is liable to pay the freight for the transportation of such goods. In ot....