2026 (7) TMI 1447

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....enalty for the period 2013-14 and 2014-15. 2. The appellant is a sole proprietor engaged in the business of transportation and distribution of newspaper printed by Dainik Bhaskar Limited [DBL] from its printing press to various centre/places located at different points. The appellant and DBL had entered into an agreement for providing the services including binding, counting, making bundles, packaging, loading, unloading and other things related to the distribution of newspapers, magazines, supplements, etc. 3. On scrutiny of the third-party information received from Income Tax Department, it has been noticed that TDS on an amount of Rs.77,39,000/- of Income Tax Act was deducted during the period 2013-14 and 2014-15. Show cause notice....

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....he category of 'Cargo Handling Service' merely because the agreement refers to loading, unloading and packing. She has challenged that the demand has been raised only on the basis of third party income tax information without appreciating the true nature of the activity. She has also submitted that the services provided during the impugned period were related to Newspaper Supply Services to the service recipient, and the activity of supply of newspapers and magazines by way of transportation was exempted from payment of service tax in terms of Mega Exemption Notification No.25/2012-ST dated 20.06.2012 S.No.21(f), and, therefore, no service tax was charged in the bills nor received from the service recipient. It was further stated th....

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.... that such a contention was raised that their work is exempted under Section 66D of the Act, however, the authorities below have not considered the same in detail and merely considering the provisions of the Mega Exemption Notification held that since the services do not fall therein the appellant is liable to pay service tax. The provisions of Section 66D(p) reads as under:- "Section 66D(p) services by way of transportation of goods - (i) by road except the services of - (A) a goods transportation agency; or (B) a courier agency; 8. Considering the agreement between the parties, it is clear that the primary objective was transportation and distribution of newspapers from the Printing Press to the desi....