TaxTMI 
TaxTMI 
2023 (9) TMI 1063
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....on charges of the export cargo for the period from August 2006 to December 2010. Show Cause Notice was issued on 15.09.2011 proposing to demand the Service Tax along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand along with interest and imposed penalty. On appeal, the Commissioner (Appeals) upheld the same. Hence, this appeal. 2. The Ld. counsel Shri Akshit Malhotra appeared and argued for the appellant. The main argument put forward by the appellant is that the Custom House Agents engaged by them were also truck owners/truck operators and that the latter had not raised any consignment note for the said service. The appellants are not liable pay Service Tax as without issuance of consignment note by a GTA, the activity of transportation by road will not fall within the ambit of GTA services. The demand has been raised on the appellant under reverse charge basis, the appellant being the service recipient. The Ld. counsel adverted to the definition of GTA Services in 65(50b). The taxable service defined in 65(105)(zzb). The Service Tax Rules, 1994 was referred to explain as to who is liable to pay Service Tax unde....
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....larifications issued by the Board after the introduction of GST in regard to goods transport agency services and consignment note. "Who is a GTA - Goods Transport Agency? As per Section 65B(26) of the Finance Act, 1994; "Goods Transport Agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called". Therefore, in the Service Tax regime, issuance of Consignment Note (C/N) was integral and mandatory requirement before any road transporter could be brought within the ambit of GTA. . . What is a consignment note? Consignment Note is neither defined in the Act nor in the notification no. 12/2017-Central Tax (Rate). Guidance can be taken from the meaning ascribed to the term under the Explanation to Rule 4B of Service Tax Rules, 1994. In terms of the said rule, consignment note means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods ar....
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....ral Excise reported in [MANU/CC/0153/2018 (Tri. Chennai)] decided in 25.06.2018, SK Cars India (P) Ltd. Vs. Commissioner of GST [MANU/CC/0120/2023 (Tri. Chennai)]. In both these cases, the demand has been set aside after noting that the assessee has not been issued a consignment note. 7. The decision in the case of Bharat Swabhiman (Nyas) Vs. Commissioner of Customs [2022 (62) GSTL 470 (Tri. Delhi)] was relied by the Ld. counsel to argue that when consignment note is not issued the activity cannot be said to be covered under goods transport agency services and the demand of Service Tax cannot sustain. 8. In the case of Commissioner of Central Excise Vs. JWC Logistics Pvt. Ltd. [2019 (22) GSTL 237 (Tri. Mum.)], the difference between the invoices issued for the freight charges collected as well as the consignment note was discussed by the Tribunal. 9. The Ld. counsel argued on the ground of limitation also. It is submitted that major period of the demand falls within the extended period. The demand is made under reverse charge mechanism and the appellant even if paid the Service Tax would be able to take CENVAT Credit. Being a revenue neutral situation, the demand raised in....
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....transporter and can, in no way, be construed as a consignment note. It does not, therefore, evidence the receipt of goods by the consignee, but merely the details of the vehicle, trip and the freight charges paid. The same cannot be called a consignment note as under Section 65(50b) of the Finance Act, 1994. A similar issue was considered by the Tribunal in South Eastern Coalfields Ltd. (supra). The Tribunal observed as under: "6. The admitted facts are that the appellants engaged various transporters/contractors for moving coal from pithead to railway sidings. These contractors do not issue 'consignment note' to the appellant. The appellant had issued slips with a view to keep the track of the goods for onwards transportation. We have perused one such slip which is issued at the loading point. The serial numbered form contained certain details like weight, date, etc. The admitted fact is that the consignor and consignee are one and the same and transporter of goods is not issuing any consignment note. In such a situation, the original authority quoting "letter and spirit of the statute" observed that by not issuing consignment note the transporter had violated the provisi....
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.... to be understood independent of Rule 4B of the Service Tax Rules, 1994 to decide whether the person concerned is a goods transport agency. 9. In Northern Coalfields Limited v. C.C.E., Bhopal vide Final Order No. 53313/2015, dated 29-10-2015, an identical situation was examined by the Tribunal. There also, the payment slips were generated by the service recipient containing relevant particulars like truck number, weight, etc., for monitoring and paying contractors for their service. No consignment notes were issued by the transporter. The Tribunal held that as no consignment note as generally understood or delineated in Rule 4B was issued by the transporter to the appellant in the transaction the tax liability under GTA does not arise." 14. In the said case, the Tribunal followed the decision in South Eastern Coalfields Ltd. Vs. Commissioner of Central Excise [2017 (47) STR 93 243 (Tri. Del.)], and held that the demand cannot be sustained if no consignment note has been issued to the service recipient. 15. In the case SK Cars India (P) Ltd. (supra), similar view was taken:- "7. A portion of the demand also has been raised under the category of GTA. The appel....
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....ent note, as laid down in Rule 4B of Service Tax Rules, 1994 were issued. According to Learned Authorised Representative, with Rule 4B prescribing the contents of a consignment note, decision in re Bharathi Soap Works on non-issue of consignment note which is normative, tax liability of the recipient does not get erased. 8. It is not the transportation of goods by road that is subject to tax but the services rendered by a goods transport agency in relation to the transportation of goods by road and road transport agency tasked with responsibilities that others connected with road transport are not, with consignment note being the point of difference. There is also no doubt that Rule 4B of the Service Tax Rules, 1994 lays down the contents of a consignment note. 9. Revenue relies upon the invoices or monthly bills raised by M/s. V.B. Enterprises. An invoice, notwithstanding adequacy of details thereon is no substitute for a consignment note. An invoice creates liability of debt on the part of the recipient of the service. A consignment note, on the other hand, carries with it a certain legal burden, the issuing of a consignment note is a contractual undertaking mad....