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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 ..... Act. According to the ld. DR, hiring of lorry for carrying the goods amounts to work and the taxpayer is liable to deduct tax as provided in section 194C of the Act. The ld. DR has placed his reliance on the judgment of the Kerala High Court in CBDT v. Cochin Goods Transport Association [1999] 236 ITR 993. On a query from the bench, whether the taxpayer has simply hired the lorry or has entrusted the work of carrying the goods by the lorry owners, the ld. DR clarified that the taxpayer simply hired the lorry and the work of carrying the goods was not entrusted to the lorry owners. According to the ld. DR the taxpayer simply hired the lorry and paid hire charges. On a query from the bench, the ld. DR clarified that the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of hire charges and they have nothing to do with any other work. In fact, M/s Logos Logistics (P) Ltd used the lorries/trucks for carriage of goods in their business. According to the ld. representative, at the best, it can be said that usage of vehicle on payment of hire charges. Admittedly the provisions of section 194-I of the Act is not applicable during the year under consideration. Therefore, the taxpayer is not liable to deduct tax. The ld. representative has placed his reliance on the decision of the Visakhapatnam Bench of this Tribunal in Mythri Transport Corpn. v. Asstt. CIT [2010] 124 ITD 40 (Visakhapatnam). The ld. representative for the taxpayer further submitted that even assuming for argument sake that the lorry owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sponsible for paying any sum to any residents for carrying out any work including supply of labour for carrying out any work in pursuance of a contract at the time of payment or crediting the said amount. The legislature with effect from 01-04-1995 inserted Explanation 4(c) to include the term "work" - carriage of goods or passengers by any mode of transport other than by railways. Therefore, the contract shall be for carriage of goods or passengers other by railway. In this case, admittedly, the carriage of goods was not entrusted with the lorry/truck owners from whom the taxpayer has hired the lorries/trucks or with the taxpayer himself. Admittedly the responsibility of carriage of goods remains with M/s Logos Logistics Pvt Ltd. No work o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without loading and unloading facility would amount to carrying out any work within the meaning of section 194C(1) of the Act. The Kerala High Court, after analyzing various case laws including the judgment of the Apex court in Associated Cement Co. Ltd. v. CIT [1993] 201 ITR 435, found that a contract for carriage of goods without loading and unloading facility is a transport contract simplicitor, therefore, it would fall within the ambit of sub section (1) of section 194C of the Act. In the case before us, admittedly, there is no contractor for transport or carriage of goods. It is a mere hiring of vehicle for using the same in the carriage of goods by M/s Logos Logistics Pvt Ltd. The lorry/truck owners were not entrusted with any work o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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