TaxTMI 
TaxTMI 
2025 (4) TMI 181
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....und that the appellant has not paid Service Tax on 'transportation of goods by road' (GTA) service under reverse charge mechanism during the period from January, 2004 to December, 2009. The said notice was adjudicated by the Ld. Assistant Commissioner of Service Tax: Division-II, Kolkata vide Order-in-Original No. 142/ST/D-II/10-11 dated 31.03.2011 wherein the demand of Service Tax raised in the notice was confirmed, along with interest. A penalty of Rs.1,000/- was imposed under Section 77 of the Finance Act, 1994 for failure to take registration and a penalty of Rs.5,000/- was imposed under Section 77(2) of the Act ibid. for non-furnishing of returns. The ld. adjudicating authority also imposed a penalty of Rs.1,00,000/- on the appellant u....
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....support of their contentions, the appellant has cited the decision rendered by the Tribunal at Allahabad in the case of Narendra Road Lines Pvt. Ltd. v. Commissioner of Cus., C.Ex. & C.G.S.T., Agra [2022 (64) G.S.T.L. 354 (Tri. - All.)] wherein similar demands raised against the assessee was set aside by the Tribunal. In view of these submissions, the appellant contends that they are not liable to pay Service Tax under the category of GTA service. 2.1. It is the further submission of the appellant that they are eligible for the abatement provided under Notification No. 34/2004-S.T. dated 03.12.2004 as the transportation charges in respect of many of the vehicles taken by them on hire was below Rs.750/- or Rs.1,500/-, as the case may be. ....
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....in the ambit of one of the seven categories mentioned in the Notification No. 35/2004-S.T. dated 03.12.2004, the liability to pay service tax on reverse charge arises only when they receive the transportation service from a goods transport agency who issues consignment notes. 7. We observe that the appellant has hired vehicles from local vehicle providers who have not issued any consignment notes. Hence, they cannot be considered as 'goods transport agency' within the meaning of Section 65(50b) of the Finance Act, 1994. The liability of the appellant to pay Service Tax under the category of 'transportation of goods by road' (GTA) service arises only when the appellant receives services from a goods transport agency who issues a consignme....
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....nt notes to their client. The said activity was exempted under Notification No. 1/2009-S.T., dated 5-1-2009 upto June, 2012 and Notification No. 25/2012-S.T., dated 20-6-2012 for the period thereafter. Therefore, the appellant did not pay service tax on such services. In some cases, the appellant transferred the right to use vehicles to its clients and such activity was also not covered under Supply of Tangible Goods prior to June, 2012 as the possession and control was given to the person who took right to use. Such activity amounts to deemed sale covered by negative list from July, 2012, in such cases, the appellant discharged service tax on these activities for the period 2015-16. ....................................................
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....or the period post July, 2012. From the records, we also find that appellant has transferred the right to use vehicle to its client and such activity was not covered under supply of tangible goods service prior to June, 2012 as the possession and control was also given to the person who had the right to use the goods and such activity amounts to deemed sales covered in negative list from July, 2012. But the appellant has discharged the service tax liability from the period 2015-16 in such cases. 15. In view of the above, we do not find any merit in the impugned order. Therefore, the same is set aside and in result appeals are allowed with consequential relief, if any." 8. As per the discussion above and by relying upon the ratio....