TaxTMI 
TaxTMI 
2026 (10) TMI 119
X X X X Extracts X X X X
X X X X Extracts X X X X
....formation available in the ST-3 returns filed by the appellant with the details available in the ITR-4 information received from the Income Tax Department, Dhanbad, for the period 2008-09 to 2011-12. 3. On completion of the investigation, a Show Cause Notice under CNo. V(30) 19Spl.Cell(ST)/Inv/ A.Mahato/Ran(H)/12/20434 dated 23.10.2013 was issued for the period from 2008-09 to 2012-13 (up to September, 2012), demanding Service Tax allegedly not paid by the appellant amounting to Rs.92,27,049/- (inclusive of cesses) along with interest. The Notice also proposed penalty under Sections 76, 77 and 78 of the Finance Act, 1994. The SCN demanding service tax under three categories: - (a) Mining of Mineral, Oil or Gas Service (b) Management, Maintenance and Repair Service (c) Supply of Tangible Goods Service. 3.1. Further, periodical Show Cause Notices dated 20.02.2015 and 13.04.2015 were also issued proposing similar demands of Service Tax for the period from October, 2012 to March, 2013 amounting to Rs.3,46,961/- and April, 2013 to March, 2014 amounting to Rs.1,43,481/- respectively alleging the charges as mentioned in above Show Cause Notice dated 23.10.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ence going by the aforesaid discussions and the Circular issued by the Board, the appellant submits that the services provided by them are aptly classifiable under GTA service. 6.2. The appellant further submits that under the Finance Act, 1994, only when the transporter issues a 'consignment notes', the said services are taxable in the hands of the service recipients, who are corporate entities in the instant case, are liable to service tax under the category of GTA services, under RCM basis, in terms of Rule 2(1)(d)(i)(B) of the Service Tax Rules, 1994 read with N.F. No. 30/2012-ST dated 20.06.2012; that transportation service without consignment notes falls in the negative list under Section 66D(p) and hence not taxable. The appellant states that the said position is supported by the judgment of the Hon'ble Apex Court in the case of Chartered Logistics v CCE [(2024) 16 Centax 473 (TAhmd)] as affirmed by the Hon'ble Supreme Court in CCE v Chartered Logistics Ltd. [(2024) 16 Centax 474 (SC)]. This principle has been followed by this Tribunal in the case of M/s.Balaji Project v The Commissioner of GST&CE, GST& CX Commissionerate [Final Order No. 76193/2026 dated 21.09.2026]. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt work orders issued by Tata Steel, the primary activity undertaken by the appellant is transportation and all other elements of the contracts are incidental or ancillary to the transportation activity undertaken by them. 10.3. We have perused the amount received by the appellant under these work orders, financial year-wise. It is seen that in the year 2008-09, the amount received for transportation was Rs. 48,28,607/- out of Rs. 69,65,254 i.e. 70% of the total receipt, in 200910, the amount received for transportation was Rs. 52,21,849/- out of Rs. 79,61,388/- i.e. 65% of the total receipt; in the year 2010-11, the amount received for transportation was Rs. 61,86,015/- out of Rs. 79,61,388/- i.e. 77% of the total receipt and in the year 2011-12, the amount received for transportation was Rs. 53,73,939/- out of Rs. 97,69,912/- i.e. 54% of the total receipt. [as seen from pages 17 to 20 of Paper Book]. Hence, the principal service involved in the instant case is "Transportation Service". 10.4. It is observed that the appellant also relied on the Board Circular No. 104/07/2008-ST dated 06.08.2008, wherein it has been clarified that composite service may include various interme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dentify the essential features of the transaction. The method of invoicing does not alter the single composite nature of the service and classification in such cases are based on essential character by applying the principle of classification enumerated in section 65 A. Thus, if any ancillary/intermediate service is provided in relation to transportation of goods, and the charges, if any, for such services are included in the invoice issued by the GTA, and not by any other person, such service would form part of GTA service and, therefore, the abatement of 75% would be available on it. 10.5. In view of the clarification issued by the Board vide the aforesaid Circular, we hold that the services rendered by the appellant are appropriately classifiable under GTA service. We observe that under the Finance Act, 1994, only when the transporter issues a 'consignment notes', the said services are taxable in the hands of the service recipients, who are corporate entities. In the instant case, we find that the recipients of the transportation service are corporate entities, falling within the ambit of one of the seven categories mentioned in the Notification No. 30/2012ST dated 20.06.2012....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y for transportation and hence, we hold that the demand of service tax confirmed in the impugned order under the category of Mining of Mineral, Oil or Gas Service, is not sustainable. Accordingly, we set aside the same. As the demand of Service Tax is not sustained on this score, the question of demanding interest or imposing penalty under section 78 of the Finance act, 1994 does not arise and hence we set aside the same. 11. Regarding the demands of Service Tax confirmed in the impugned order under the category of Management, Maintenance and Repair Service and Supply of Tangible Goods Service., the appellant submitted that their turnover excluding the Transportation service, during the Financial Years 2008-09 to 2012-13 year-wise individually or jointly did not exceed the threshold exemption limit of Rs. 10,00,000/- as provided under Notification No. 8/2008-ST, dated 01.03.2008, as amended by Notification No. 33/2012-ST dated 20.06.2012 (w.e.f. 01.07.2012) For ready reference, the turnover of the appellant in the respective financial years is provided in the Table below: Financial Year Amount Received against Supply of Tangible Goods Amount received against Management,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... find that the impugned order has confirmed the demand of Rs.1,43,481/- for the period from April 2013 to March 2014. The appellant has submitted before us that the impugned order has not recorded any finding while confirming the said demand and thus, the same is not legally sustainable. Further, it is their plea that even in case the demand is 'Mining of Mineral, Oil or Gas Service', the same cannot be sustained in view of the legal position as maintained by them in their extensive submissions. We agree with the said stand of the appellant. Even otherwise, in the case the demand is not under the above said category, we observe from the records available that the appellant would be entitled for the benefit of SSI exemption for the said Financial Year. Therefore, considering the facts placed before us and the submissions made, we hold that the said demand cannot be sustained and accordingly, set aside the same. 12.1 In view of the above findings, we pass the following order: (i) The entire demand of Service Tax confirmed in the impugned order under the category of 'Mining of Mineral, Oil or Gas Service', is set aside. The interest charged and penalty imposed under Sectio....