2016 (8) TMI 795 - AT - Service Tax

Eligibility of Refund claim excess payment of service tax due to calculation mistake on the basis of some bills - goods transport agency service services of cargo handling Held that - the Tribunal after detailed examination of the factual and legal issues held that there is no service tax liability under GTA service for the appellant appeal allowed decided in favor of appellant.

Summary

Issues:
1. Refund claim of excess service tax paid by coal mining company for transport of goods by road.
2. Applicability of service tax under 'Goods Transport Agency' category.
3. Eligibility for refund based on previous Tribunal orders and High Court remand.

Analysis:
1. The appeal was filed against the order of Commissioner (Appeals-I), Raipur, rejecting a refund claim of &8377;1,06,33,101/- by a coal mining company for excess service tax paid due to a calculation mistake. The original authority deemed the payment as taxable involving composite works of goods transport and cargo handling. On appeal, the Commissioner upheld the decision. The appellant argued that they are not liable to pay service tax on certain invoices issued by the contractor for activities like loading, which are not taxable under Goods Transport Services.

2. The Tribunal, in a previous Final Order, held that the appellants are not liable for service tax under the 'Goods Transport Agency' category. This decision was based on the absence of consignment notes by the transporter and an interpretation of the definition of 'Goods Transport Agency' under Section 65(50b) of the Act. The Tribunal ruled no service tax liability existed under GTA service for the appellant during the relevant period.

3. Upon re-examination of the case, the Tribunal reaffirmed its earlier decision, emphasizing the lack of service tax liability under GTA service for the appellant. The Tribunal referred to various past cases with similar facts to support its conclusion. The matter had been previously appealed to the High Court, which remanded it for fresh consideration by the Tribunal. With the issue of tax liability settled in favor of the appellant, the appeal was allowed, granting consequential relief.

This detailed analysis highlights the progression of the case, the legal arguments presented, and the final decision based on the interpretation of relevant laws and precedents.