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TMI Blog2013 (1) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... with M/s Logos Logistics Pvt Ltd. No work of carriage of goods was entrusted either with the taxpayer or with the lorry/truck owners from whom the taxpayer hired the lorries/trucks. Therefore, there is no contract for carriage of goods between the taxpayer and the lorry/truck owners from whom the trucks/lorries were hired. As such provisions of section 194C are not applicable to this transaction. See Mythri Transport Corpn. case (2009 (1) TMI 337 - ITAT VISAKHAPATNAM), Cochin Goods Transport Association (1998 (10) TMI 68 - KERALA HIGH COURT) & Associated Cement Co. Ltd. v. CIT [1993 (3) TMI 1 - SUPREME COURT] Moreover, the taxpayer has admittedly paid hire charges to lorry owners. Thus as decided in Merlyn Shipping & Transporters v. Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges. On a query from the bench, the ld. DR clarified that the provisions of section 194-I for deduction of tax in respect of hire charges is not applicable for the year under consideration since section 194-I was introduced subsequent to assessment year under consideration. 3. On the contrary, Shri Nityananda Kamath, the ld. representative for the taxpayer has submitted that the taxpayer is a transport contractor. In this case, the taxpayer has simply supplied trucks to M/s Logos Logistics Pvt Ltd on hire basis. Since the trucks owned by the taxpayer were not sufficient enough for giving them on hire to M/s Logos Logistics Pvt Ltd, the taxpayer hired lorries from other truck owners and gave them to M/s Logos Logistics Pvt Ltd for using ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he taxpayer further submitted that even assuming for argument sake that the lorry owners are treated as a sub-contractors even then the taxpayer is not liable to deduct tax. According to the ld. representative, the taxpayer is not the main contractor. The main contractor is admittedly M/s Logos Logistics Pvt Ltd. At the best, the taxpayer can be termed as sub-contractor. Therefore, a transaction between sub-contractor and another sub-contractor would not attract provisions of section 194C at all. The ld. representative has placed his reliance on the decision of the Mumbai Bench of this Tribunal in HCC-L T Purulia Joint Venture v. Jt. CIT [ITA No 1644/MUM/2010 3041/MUM/2010, dated 24th June, 2011], copy of which is available at page 38 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... responsibility of carriage of goods remains with M/s Logos Logistics Pvt Ltd. No work of carriage of goods was entrusted either with the taxpayer or with the lorry/truck owners from whom the taxpayer hired the lorries/trucks. Therefore, there is no contract for carriage of goods between the taxpayer and the lorry/truck owners from whom the trucks/lorries were hired. As such, this Tribunal is of the considered opinion that provisions of section 194C are not applicable to this transaction. 6. We have carefully gone through the decision of the Visakhapatnam Bench of this Tribunal in the case of Mythri Transport Corpn. (supra). In the case before the Visakhapatnam Bench of this Tribunal, the taxpayer, a contractor undertook to transport bitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by M/s Logos Logistics Pvt Ltd. The lorry/truck owners were not entrusted with any work of carriage of goods. The diesel bill and the bata to drivers are paid by the taxpayer. Therefore, it is not a case of contract for carriage of goods. Hence, the judgment of the Kerala High Court is not applicable to the facts of this case. In the admitted facts of the case it is a simple case of hiring the lorry/truck and payment of hire charges, therefore, at the best, it would fall u/s 194-I of the Act. Since the provisions of section 194-I is admittedly not applicable for the year under consideration, the taxpayer is not liable to deduct tax on payment of hire charges to the lorry/truck owners. 8. Moreover, the taxpayer has admittedly paid hire ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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