2017 (1) TMI 551 - AT - Service Tax

GTA service - reverse charge mechanism - amount paid to a sanstha or a society which is called as Bhima Sarva Seva Sangh for harvesting and transporting sugarcane to their factory - Held that - reliance placed in the case of Nandganj Sihori Sugar Co. Ltd. v. Commissioner of Central Excise, Lucknow 2014 (5) TMI 138 - CESTAT NEW DELHI , where it was held that there will be no service tax liability on the appellant sugarcane mills, as they have not received the service from a Goods Transport Agency - appeal allowed - decided in favor of appellant.

Summary

Issues: Liability of appellant to pay service tax on transportation of sugarcane and commission paid for transportation under reverse-charge mechanism.

The judgment by the Appellate Tribunal CESTAT Mumbai dealt with an appeal against an Order-in-Original confirming service tax demand, interest, and penalties on the appellant for payments made for transportation of sugarcane to their factory and commission paid for transportation. The issue revolved around the liability of the appellant to pay service tax under the reverse-charge mechanism. The adjudicating authority considered the payments made to a society for harvesting and transporting sugarcane as falling under 'Goods Transport Agency Service.'

The Tribunal noted that the same appellant had previously appealed on a similar issue for the period 2004-05 and 2005-06. In that case, the Tribunal had allowed the appeal based on the judgment in the case of Nandganj Sihori Sugar Co. Ltd. v. Commissioner of Central Excise, Lucknow. Given the precedent set in the appellant's favor in their earlier case, the Tribunal found no reason to deviate from that decision.

Consequently, the Tribunal set aside the impugned order and allowed the appeal, providing consequential relief as necessary. The decision was based on the consistency of the Tribunal's previous ruling in favor of the appellant, ensuring fairness and adherence to established legal principles.

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