2010 (2) TMI 317 - AT - Service Tax

Goods transport agency service- the appellants received service only from the individual truck owners/tractor owners who do not fall within the definition of goods transport agency and therefore the applicants are not required to discharge service tax liability. Held that- details of the owners of vehicles on which the goods were transported was not before the authorities below and therefore the interests of justice require that the case be remanded to the adjudicating authority for verification of the submission of the appellant. The appeals are thus allowed by way of remand.

Summary

Issues:
1. Whether the appellants are liable to discharge service tax liability for receiving services from individual truck/tractor owners not falling within the definition of 'goods transport agency'?
2. Whether the case should be remanded to the adjudicating authority for verification of the ownership details of the vehicles used for transportation?

Analysis:
1. The Appellate Tribunal allowed the miscellaneous applications filed by the appellants, based on the decision in CCE, Guntur v. Kanaka Durga Agro Oil Products Pvt. Ltd., stating that the appellants received services only from individual truck/tractor owners not meeting the 'goods transport agency' definition, hence not required to discharge service tax liability.
2. During the hearing, the appellants' counsel submitted a list of individual truck/tractor owners who provided services, asserting the inapplicability of service tax. The Tribunal noted that such ownership details were not presented before the lower authorities, necessitating a remand for verification by the adjudicating authority. If confirmed, in line with the cited precedent, no service tax demand can be upheld against the appellants. The Tribunal directed expedited fresh decision after setting aside the impugned orders and granting waiver of predeposit, ensuring a fair hearing for the assessees.

In conclusion, the appeals were allowed by remand for further verification and a fresh decision by the adjudicating authority, emphasizing the need for establishing the ownership status of the vehicles involved in the transportation services received by the appellants.