2018 (10) TMI 473 - AT - Service Tax

GTA Service - vehicles taken on lease were used for transportation of ready mix concrete from the plant to the site - reverse charge mechanism - whether the amounts paid by the appellant for leasing of special purpose vehicles for transportation of ready mix concrete would fall under Goods Transport Agency services or otherwise? Held that - Identical issue decided in appellant own case M/S. LARSEN & TOUBRO LIMITED VERSUS COMMISSIONER OF ST & CENTRAL EXCISE CHENNAI SOUTH COMMISSIONERATE 2018 (6) TMI 439 - CESTAT CHENNAI , where relying on the Tribunal in the case of Birla Ready Mix Vs. Commissioner of Central Excise 2012 (12) TMI 736 - CESTAT, NEW DELHI , on similar set of facts held that the said activity would not fall within GTA service - demand do not sustain - appeal allowed - decided in favor of appellant.

Summary

Issues:
Interpretation of whether amounts paid for leasing special purpose vehicles for transportation of ready mix concrete constitute Goods Transport Agency services.

Analysis:
The appeal was filed against the Order-in-Original No. 07/2009-Commr-ST, which alleged that the amounts paid by the appellant for leasing special purpose vehicles for transporting ready mix concrete fell under Goods Transport Agency services. The revenue claimed that the appellant was liable to pay service tax under the reverse charge mechanism. The appellant contested this claim, arguing that the leased vehicles did not constitute services rendered by Goods Transport Agency services. The adjudicating authority disagreed with the appellant's contentions and confirmed the demands along with interest and penalties.

The counsel for the appellant referred to a similar issue decided by the Tribunal in Appeal No.ST/777/2010, where the Tribunal set aside the Order-in-Original and allowed the appeal with consequential relief. The counsel also cited a decision in the case of Birla Ready Mix Vs CCE to support their argument. After considering the submissions, the Tribunal examined whether the amounts paid for leasing special purpose vehicles for transporting ready mix concrete would fall under Goods Transport Agency services.

The Tribunal reviewed a similar case decided by the Tribunal in Final Order dated 15.03.2018, where it was held that the lease of special purpose vehicles for transport of ready mix concrete did not fall under Goods Transport Agency services. The Tribunal relied on the decision of the Hon'ble High Court of Andhra Pradesh and the case of Birla Ready Mix to support its conclusion. Consequently, the Tribunal held that the demand for service tax could not be sustained, set aside the impugned order, and allowed the appeal with consequential relief.

Given the previous decision by the Tribunal in a similar case and the legal precedents cited, the Tribunal found that the impugned order was unsustainable. Therefore, the Tribunal set aside the impugned order and allowed the appeal.