2015 (11) TMI 1256 - AT - Service Tax

Waiver of pre deposit - Goods Transport Agency service - Held that - Since the issue involved in the present appeal is squarely covered by the decision of this Tribunal cited 2015 (10) TMI 857 - CESTAT ALLAHABAD , in appellant s own case, following the Tribunal s decision, we quash the impugned order by holding that the appellant is not liable to service tax, interest and penalty under the category of Goods Transport Agency - Decided in favour of assessee.

Summary

Issues:
- Liability to pay service tax on 'Goods Transport Agency'

Analysis:
The appeal was against the Order-in-Appeal passed by the Commissioner of Central Excise, holding the appellant liable to pay service tax on 'Goods Transport Agency.' The appellant, a subsidiary of Coal India Limited engaged in mining and sale of coal, transported coal within the mining area using private temporary passages. The appellant engaged private transport contractors for this purpose. The appellant argued that the transport within the mining area did not constitute transport by road as per the relevant provisions. The appellant also contended that since no consignment note was issued by the transporters, the service did not fall under Goods Transport Agency service as defined in the Act.

The Tribunal, in a previous order, had held that the absence of a consignment note by the transporters providing services to the appellant meant that there was no rendition of Goods Transport Agency service, thus no levy of tax under that category. The Tribunal referenced a decision in another case where it was established that the issuance of a consignment note was a crucial requirement for classifying an activity as Goods Transport Agency Service under the Act. The Revenue supported the Commissioner's findings, but the Tribunal, relying on its previous decision, ruled in favor of the appellant. The Tribunal quashed the order, stating that the appellant was not liable to pay service tax, interest, or penalty under the Goods Transport Agency category. The appeal was allowed, and no costs were imposed.

In conclusion, the Tribunal's decision was based on the absence of consignment notes by the transporters, which was a key factor in determining the applicability of Goods Transport Agency service. The appellant's argument that the transport within the private mining area did not constitute road transport was upheld, leading to the quashing of the order to pay service tax under the Goods Transport Agency category.