2013 (2) TMI 563 - AT - Service Tax

Non payment of Service Tax on transport charges - Goods Transport Agencies (GTA) - assessee claimed to exemption from payment of Service Tax as per Notification No. 34/2004-ST Dated 03/12/2004 - Held that - Appellant had availed the services of GTA and also individual truck owners during the period 2004-05 to 2009-10. But it is also true that they could not substantiate their claim that they were entitled to the benefit of Notification No. 34/2004-ST Dated- 03.12.2004 as the freight amount paid by them in most of the cases were below Rs.750/- per single trip and Rs.1500/- for double consignment. This claim of the Appellant needs verification by the lower authorities. Both sides agree that the case be remanded to the original adjudicating authority for verification of these facts.

Summary

Issues: Appeal against non-payment of service tax under Notification No. 34/2004-ST Dated 03/12/2004 on transport charges.

Detailed Analysis:
1. Issue of Non-Payment of Service Tax: The appellant received services from individual truck owners and Goods Transport Agencies (GTA) between 2004-2005 to 2009-2010 without paying service tax, claiming exemption under Notification No. 34/2004-ST Dated 03/12/2004. The Audit officer issued a show cause notice (SCN) for non-payment of Rs.28,733 on transport charges of Rs.9,59,061. The lower authorities confirmed the demand and imposed penalties, leading to the appeal.

2. Appellant's Submission: The appellant contended that they were not liable to pay service tax as most payments were made to individual truck owners below the exemption limit specified in the notification. They also ensured service tax payment when using GTA services. The consultant stated that supporting documents were available but not presented before the lower authorities.

3. Revenue's Argument: The Revenue argued that the appellant failed to provide documentary evidence to support their claim of exemption under the notification.

4. Judgment and Remand: After hearing both parties, the tribunal observed that while the appellant used GTA and individual truck owners' services, they couldn't prove entitlement to the exemption due to insufficient evidence. The tribunal decided to remand the case to the adjudicating authority for verification of the appellant's claim. The order of the Ld. Commissioner (Appeal) was set aside, and the appellant was granted an opportunity to produce all evidence supporting their claim. The appeal was allowed by way of remand to the adjudication authority for further verification.

In conclusion, the tribunal remanded the case for verification of the appellant's claim regarding exemption under Notification No. 34/2004-ST Dated 03/12/2004 and the payment of service tax by GTA where applicable, emphasizing the need for proper documentation and evidence to support the claim.