2009 (3) TMI 130

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....ese two appeals against the following impugned Orders-in-Appeal. (i) Order-in-Appeal No.5/2008 G (ST); dated 20.2.2008; and (ii) Order-in-Appeal No.4/2008 G (ST) both dated 20.2.2008 2. We heard both sides. 3. S/Shri K.S. Ravi Shankar and R.D. Murthy, learned advocates appeared on behalf of the respondents. Ms. Joy Kumari Chander, learned Joint CDR appeared on behalf of the revenue. 4. The respondents paid Service Tax under the category Goods Transport Agency (GTA) in terms of Notification No.32/2004-ST dt. 3.12.2004, in terms of which, the effective rate of Service Tax is only 25% of the gross amounts charged from the customer by the GTA. However, revenue proceeded against the respondents on the ground that they had not fulf....

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....rocedure prescribed is that a declaration by the service provider, in all such cases, on the consignment note, to the effect that the conditions of the aforesaid exemption notification have been satisfied, would be sufficient for availing of the benefit under the said notification. Opinion of Law Ministry has also been sought in this matter. Law Ministry has concurred with the above views of the Department. Therefore, in all such cases, where the above procedure has been followed, no demand notice may be issued on the basis of objection raised by the C & AG Office, and all pending matters may be decided accordingly." It is very clear from the Board's 37B Order that the exemption is available only if declaration is given by the ser....

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.... applicable to the present case wherein the demands were confirmed in the absence of declarations from the service providers that they did not avail credit as prescribed in the Notification. From the foregoing it is apparent that the Commissioner (Appeals) erred in setting aside the Order of the lower authority. In view of the above submissions, it was opined that the impugned orders passed by the Commissioner (Appeals) under Section 85 of Finance Act, 1994 is not legal, proper and not maintainable either on point of law or on facts. Hence, the impugned orders are required to be set aside. 6. The learned advocates appearing for the respondents invited our attention to the Finance Minister's speech in 2004 wherein the Finance Minis....

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.... the floor of the parliament to allay the doubts and fears of the truck owners and operators while presenting the budget in the year 2004 on 8.7.2004 that no tax would be levied on such parties and only on booking agents. It is not the case of the revenue in the present appeals that the respondents had obtained services of the booking agents and it is found to the contrary in the impugned orders that the truck owners gave vehicles on hire to the respondents to transport the goods. The revenue appeals are liable to be rejected. 6.2 The learned advocate for the respondents invited our attention to the following extract of Union Finance Minister's speech. "149. 58 services have been brought under the net so far. I propose to add some....

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....ervices rendered by a goods transport agency in relation to transport of goods by road. It was submitted that the department has ignored this aspect of law, which is a cardinal importance and departmental appeals are liable to be dismissed. 6.5 It was urged that the provisions of the taxing statute especially the charging section has to be interpreted strictly and there is no scope for any intendment. In the case of Hemraj Gordhandas Vs. HH Dave - 1978 ELT J350 (SC), the Hon'ble Apex Court held that there is no room for intendment in any taxing statute. The words of a statute shall be strictly construed. 6.6 It was further urged that the word 'agency' in GTA should be construed given the definition of agent in Section 182 ....