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2024 (5) TMI 995 - AT - Service TaxTransportation services - liability to pay Service Tax u/s 65(50b) - GTA Service - transportation of Pre-Stressed Concrete Poles (PSC Poles) - GTA service - HELD THAT - Admittedly vehicles were being hired by the appellant through a contract for transportation of the goods does not make them a Goods Transport Agency. Admittedly, no consignment notes were generated but fortnightly waybills were submitted by the appellant to their consignee for collecting the transport charges. Thus, I am of the view that they cannot be considered as Goods Transport Agency , therefore, not liable to service tax. In the result, the impugned order is set aside and the appeal is allowed.
Issues Involved: Determination of liability to pay Service Tax u/s 65(50b) for transportation services provided by the appellant.
Summary: The appellant, a manufacturer and supplier of Pre-Stressed Concrete Poles (PSC Poles) for the Kerala State Electricity Board (KSEB), appealed against the Order-in-Appeal holding them liable to pay Service Tax for transportation services provided. The dispute revolved around the interpretation of the definition of 'Goods Transport Agency' u/s 65(50b) and the requirement of issuing consignment notes. The appellant's counsel argued that post 01.05.2006, services provided by any person were taxable under Section 65(50b), emphasizing the necessity of satisfying both the conditions of transport of goods and issuing consignment notes as per Rule 4B of Service Tax Rules, 1994. Citing various precedents, the counsel contended that mere transportation of goods does not automatically attract Service Tax as a Goods Transport Agency (GTA). The Authorized Representative (AR) relied on the amended definition of 'Goods Transport Agency' to assert the appellant's liability for Service Tax due to arranging transportation and collecting freight charges. Referring to relevant case laws, the AR supported the position that the appellant fell under the purview of a GTA. After hearing both sides, the Tribunal considered the period of dispute from 01.01.2005 to 30.06.2007 and examined the appellant's practice of hiring vehicles for transporting PSC Poles without issuing consignment notes. Citing precedents, the Tribunal concluded that the appellant's activities did not qualify them as a GTA, thereby absolving them of Service Tax liability. In light of the discussions and legal interpretations presented, the Tribunal set aside the impugned order and allowed the appeal, ruling in favor of the appellant. (Order pronounced in Open Court on 20.05.2024.)
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