TaxTMI 
TaxTMI 
2025 (7) TMI 387
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....rization in terms of Section 67(1) of TNGST Act, 2017 on 15.11.2023. During the course of inspection, it was inter-alia noticed that there was an excess claim of Input Tax Credit. 3. During the relevant assessment year, the petitioner had provided service by way of renting vehicles on hire to one M/s.Zinc Food Private Ltd., who provide GTA Services. It is the case of the petitioner that the above supply is nil-rated in terms of Notification No.12/2017 Central Tax (Rate) dated 28.06.2017. The relevant portion reads as follows: Sr. No. Heading Description of Service Rate 22 9966 or 9973 Services by way of giving on hire a)............ b) to a goods transport agency, a means of transportation of goods NIL Rated 4. The above supplies were proposed to be treated as liable for tax on the basis of verification of the statement under Form 26AS, which apparently revealed that apart from Government Departments, the petitioner had provided services to others, whereby TDS was deducted under Section 194C. The petitioner had not furnished the following outward supplies in GSTR-1 re....
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....gar, dhall, wheat, oil barrels, gunnies etc. M/s Zinc Food Private Ltd., being a GTA have hired goods vehicles form the tax payer on regular basis and paid hire charges. The tax payer in turn hired goods vehicles on the basis of hire charges from Tvl. Sri Jaisakthi Transport, lent to M/s Zinc Food Private Ltd., on regular basis. The tax payer raised Bill of supply, mentioning SAC 996601, to M/s Zinc Foods (P) Ltd., mentioning hire charges for transportation of goods as mentioned below:- 1) Hire charges upto 100 kms. 2) Hire charges from 100 to 300 kms. 3) Hire charges from 300 and above 4) Hire charges from Rail Head M/s Zinc Foods Private Limited raised Bill of supply to The Regional Manager, Tamilnadu Civil Supplies Corporation, Dharmapuri mentioning transport charges under SAC 996511 periodically and received bill amount, from the said service recipient. It is to be stated that in none of the above mentioned Bill of supply GST has been charged. M/s Zinc Foods (P) Ltd., have mentioned in the invoice a protective clause that any other applicable taxes and ....
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....mitted that the petitioner is not liable to pay tax on hire or renting charges received for goods vehicle given on hire / lease /rent to registered GTA in the State of Tamil Nadu. However, the impugned order, while dealing with the above objection, merely rejecting the reply and confirming the proposal. The order under the head "findings" once again reiterates the very same proposal and does not deal with any of the objections raised by the petitioner including the claim by the petitioner that hiring / renting to GTAs is entitled to exemption in terms of Notification No.12/2017. It was thus submitted that the impugned order suffers from gross non-application of mind and thus stands vitiated. 7. Insofar as the second issue is concerned, it is submitted by the learned counsel for the petitioner that they had taken on lease motor vehicles, which was thereafter used for GTA services rented by the petitioner. However, the same was sought to be subjected to tax in the Show Cause Notice by stating that lorry freight expenses and transport income incurred represent taxable supplies. The relevant portion of the Show C....
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....in the Financial Statement. Hence, it is not a taxable turnover under TNGST Act, no GST is leviable. Therefore, it is prayed to drop the proposed levy of tax and other dues on this defect. (Ledger A/c of relating to payment of lorry hire charges to Tvl.Sri Jaisakthi Transport enclosed)." 8.1. However, the impugned order proceeds to confirm the proposal by stating that the petitioner had not submitted any relevant documents and hence the tax payer's reply is not accepted. The relevant portion is extracted hereunder: Findings: For the defect the taxpayer not submitted any relevant documents, hence the taxpayer reply is not accepted. Hence the taxpayer is intimate to ay tax penalty along with interest. Tax Interest Penalty CGST SGST CGST SGST CGST SGST 130609 130609 79160 79160 130609 130609 9. It is submitted by the learned counsel for the petitioner that the impugned order does not assign any reason for rejecting the reply filed. It is submitted that there is non-application of mind to the reply, as evident from the fact that none of the issues r....