2017 (1) TMI 307 - AT - Service Tax

GTA services - demand of tax and penalty - Held that - the respondent had submitted the receipts pertaining to hire charges received for letting out their vehicles. There is nothing in the appeal filed by the Revenue to indicate that for such activity the respondent should be subjected to service tax under the category of GTA Services. The requirement for tax liability under the said services is not fulfilled - demand set aside - appeal dismissed - decided against Revenue.

Summary

Issues:
Tax liability of Goods Transport Agency for the period 2006-07 to 2008-09.

Analysis:
The appeal before the Appellate Tribunal CESTAT New Delhi pertained to the tax liability of a Goods Transport Agency (GTA) for the years 2006-07 to 2008-09. The Revenue challenged the order of the Commissioner (Appeals) which had set aside the original order confirming a service tax liability of ?27,79,403 and penalties imposed under the Finance Act, 1994. The Revenue contended that the GTA provided services related to the transport of goods by road but failed to produce evidence of providing vehicles on hire charges. The impugned order highlighted that the appellant, as a truck owner/operator, could not be held liable for service tax based on the consignment notes provided by other transport companies and the absence of consignment notes issued by the appellant for the return trip from sea ports.

The Tribunal noted that the Revenue did not contest the factual findings and that the appellant had submitted receipts for hire charges received for letting out their vehicles. It was observed that the appellant did not issue consignment notes for the carriage of goods on the return trip. The Tribunal agreed with the impugned order that there was no basis to subject the appellant to service tax under the category of GTA Services as the requirements for tax liability under such services were not met. Therefore, the Tribunal found no merit in the Revenue's appeal and dismissed it, along with disposing of the cross objection filed by the respondent.

In conclusion, the Tribunal upheld the decision of the Commissioner (Appeals) and ruled in favor of the respondent, the GTA, by dismissing the Revenue's appeal. The judgment emphasized the importance of meeting the specific criteria for tax liability under GTA Services and highlighted the significance of providing necessary evidence to support any tax claims in such cases.