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TMI Blog2011 (3) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... rds - It is of course subject to verification by the department and such of those consignment agents, who have not paid the service tax would no doubt be liable to be proceeded against by the department, for cases of non-payment, if any - Decided in favor of assessee - appeals allowed. - ST/S/162/2010 & ST/284/2010 - - - Dated:- 11-3-2011 - Dr. CHITTARANJAN SATAPATHY, JJ. Smt. Sridevi, Adv., for the appellants Shri A.B. Niranjan Babu, SDR, for the respondents Heard both sides. 2. I find that in a similar case, the Division Bench has waived the requirement of predeposit vide M/s. Amaravathi Sri Venkatesa Paper Mills Pvt. Ltd. Vs. CCE, Madurai, Stay Order No.166-171/11 dated 31.01.11. As such the requirement of prede ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. SDR appearing for the department states that the consignment agents are acting only as agents for the appellant s paper mills. Hence, the appellants are liable to pay service tax. He also refers to the legal provision under Rule 2 (1)(d)(v) of the Service Tax Rules,1994, under which any person who pays or is liable to pay freight either himself or through his agent is liable to pay the service tax. According to him, even if the consignment agents have paid the freight amount, the appellants paper mills cannot escape from the tax liability. 5. I have considered the submissions from both sides. The facts of the case are that the appellants have not paid the freight amount to the transporters which is not in dispute. The impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the consignment agents fall under the category person who are liable to pay service tax . It is also not in doubt that the consignment agents are agents of the appellants engaged in the business of selling paper and paper boards on behalf of the appellants. However, it is not established that the consignment agents have paid the freight amounts on behalf of the appellants. If that were so, then the consignment agents would be recovering the freight amounts from the appellants which is not the case. On the other hand, the findings of the authorities below are that the freight amounts are paid by the consignment agents and are deducted from the sale proceeds received from the ultimate buyers of the paper and paper boards. This position is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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