2008 (6) TMI 128 - AT - Service Tax

GTA service - demand on vehicle used for transporting ready mix concrete - ex party order has been passed in spite of the fact that the applicant vide letter dated 12.2.08 made a request for adjournment of the hearing for two weeks as the counsel was unwell - It is not a case of the Revenue that many opportunities were granted to the applicant to attend the personal hearing - impugned order passed ex parte is set aside - appeal is disposed of by way of remand

Summary

Issues:
1. Violation of principles of natural justice in passing an ex parte order.
2. Interpretation of goods transport agency service and liability for Service Tax.
3. Role of the service provider in transportation of goods and liability for Service Tax.

Analysis:
1. The applicant filed for waiver of pre-deposit of Service Tax and penalties, contending that an ex parte order was passed despite requesting an adjournment due to the counsel's illness. The applicant argued that the order violated natural justice principles as the request for adjournment was declined, leading to the ex parte decision. The Tribunal found merit in this argument and set aside the impugned order, remanding the matter for a fresh decision after granting an opportunity for a hearing, thereby disposing of the appeal through remand.

2. On the merit of the case, the applicant, engaged in manufacturing ready mix concrete, hired transit mixtures for transportation. The contention was that as no consignment note was issued for the transport of goods and the trucks were specialized for carrying concrete to prevent settling, the liability for Service Tax was not applicable. However, the Revenue argued that the service provider undertook all activities related to transportation as per the direction of the applicant, functioning as transporters similar to commercial concerns. The Tribunal noted the specifics of the arrangement and the nature of the transportation service provided, leading to the decision to remand the case for further consideration.

3. The Tribunal considered the specialized nature of the vehicles hired for transporting ready mix concrete, emphasizing the applicant's request for adjournment due to illness during the hearing process. It was highlighted that the Revenue did not grant multiple opportunities for a personal hearing, leading to the ex parte order being set aside. The Tribunal, after waiving the pre-deposit of Service Tax and penalties, remanded the matter to the adjudicating authority for a fresh decision with a proper opportunity for the appellant to present their case, ultimately disposing of the appeal through remand.