2024 (8) TMI 321

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....efly stated the facts of the case are that the appellant are registered as a 'manufacturer' of sugar and also registered under Service Tax for the purpose of Goods Transport Agency services. On verification of their records, it was alleged that the appellant was paying freight charges to transporter towards transportation of sugarcane from the fields of cane growers to their factory on behalf of the cane growers and recovering the said freight amount from the total amount paid to the cane growers from whom the cane had been sourced. On completion of investigation, a show-cause notice was issued to them demanding service tax of Rs.1,12,396/- under the GTA service after allowing abatement of 75% for the period from 01.01.2005 to 05.05.2006 wi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....45 (Tri. Bang.)] 3.2. Further the learned advocate has submitted that the show-cause notice was issued on 31.10.2008 for recovery of the amount pertaining to the period 01.01.2005 to 05.05.2006 is barred by limitation as no facts have been suppressed or concealed from the knowledge of the Department. Also, penalty imposed on the appellant is unwarranted. 4. Learned AR for the Revenue reiterated the findings of the learned Commissioner(Appeals). 5. Heard both sides and perused the records. 6. The short issue involved in the present appeal is whether the appellant is required to pay service tax on the amount of transportation cost paid to the transporters and later recovered from the cane growers. We find that the issue is no more....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tation cost and paid the same to the transporter. On this factual matrix in this case, we have to hold that appellant need not pay Service Tax on the amount of transportation charges. If the appellant had borne and paid transportation charges that would have been liable to pay Service Tax liability under "Reverse Charges Mechanism" as per the provision of Finance Act, 1994 and Rules made thereunder. Again there are no provisions for appellant to pay tax on deducted amount, from the final settlement of sale of sugarcane, as it cannot be treated as transportation charges paid by the appellant. 5.2 Secondly, we find that the learned Counsel was correct in placing on record that similar issue came in before the Bench, for taxability of....