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TMI Blog2014 (11) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee herein is a Co-operative Sugar Mill, registered for Service Tax under Section 69 of the Finance Act, 1994 [hereinafter, called as the "Act"]. It is stated that the assessee availed the services of Goods Transport Agency and paid the applicable Service Tax. On scrutiny of the records, it came to the notice of the Adjudicating Authority that the assessee paid Service Tax for the freight incurred for the Inward receipt of sugarcane that exceeded Rs. 1,500/-; but they failed to pay Service Tax for the freight that exceeded Rs. 750/- but below 1,500/- in respect of transport of sugarcane into his factory in respect of Goods Transport Agency service availed as a consignee during the period from 1-1-2005 to 31-3-2007. According to the Revenue, the assessee paid the Service Tax amounting to Rs. 10,49,334/- for the freight incurred that exceeded Rs. 750/- but below Rs. 1,500/- through e-payment mode on 20-7-2007. On 13-2-2008, the Deputy Commissioner of Central Excise, Salem Division issued a show cause notice to levy interest on the tax paid belatedly as per Section 75 of the Finance Act, 1994. According to the Revenue, the assessee came under the category of persons liable f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994. 5. A reading of the order of the Customs, Excise and Service Tax Appellate Tribunal shows that it adverted its attention only to the application filed by the assessee by way of additional grounds. It pointed out that if the services were rendered by individual truck/transport operators, there would be no Service tax liability. As the details of the owners of the vehicle or where the goods were loaded were not available before the Authorities, the Tribunal remanded the case for verification of the assessee's contention. This decision was thus based on the decision of the Tribunal reported in 2009 (15) S.T.R. 399 - Bangalore Bench [Commissioner of Central Excise & Customs, Guntur v. Kanaka Durga Agro Oil Products Pvt. Ltd.], the Adjudicating Authority was directed to pass a fresh order, after verifying the records and after giving a reasonable opportunity of hearing to the assessee. 6. Aggrieved by this, the present appeal has been preferred by the Revenue. 7. Learned Standing Counsel appearing for the Revenue, pointed out that the Tribunal had passed an order on totally different grounds than the one under which the Deputy Commissioner demanded interest. Admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alled. Thus the only amendment that was brought under Finance Act, 2006 with effect from 1-5-2006 was that as against the "commercial concern", the Finance Act substituted "any person who provides" and thus widened the scope of the definition as applicable to all persons irrespective of it being an individual or a commercial concern. 13. Notification No. 34/2004 S.T., dated 3-12-2004 granted exemption for liability as under : "Service tax exemption to consignments transported by road when gross amount charged is upto Rs. 1,500/- or when gross amount charged for an individual consignment is upto Rs. 750/- (w.e.f. 1-1-2005) In exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to a customer, in relation to transport of goods by road in a goods carriage, from the whole of service tax leviable thereon under Section 66 of the Said Act, where - (i) the gross amount charged on consignments transported in a goods carriage does not exceed rupees one thousand f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ividual truck owner/operators, there was no liability to service tax. Thus the Tribunal viewed that when the tax was paid wrongly, the assessee was not liable to pay any service tax. In the circumstances, the Bangalore Tribunal allowed the appeal. 16. As far as the reliance placed on the Finance Minister's Speech in the course of budget presentation is concerned, Courts have consistently held that budget speech would not be taken in aid for understanding the scope of the clear terms of the provisions in the taxation enactment vide the decision of the Apex Court reported in 1998 (9) SCC 630 = 1998 (99) E.L.T. 199 (S.C.) [Union of India v. Ganesh Rice Mills and Another]. 17. Section 65(50b) of the Finance Act, 1994 defines the "Goods Transport Agency" as 'any person' who provides service in relation to transport of goods by the road and issuing consignment note, by whatever name called. 18. The expression "any person" is not defined under the Act. Section 3(42) of the General Clauses Act defines "person", as including any company or association or body of individual whether incorporated or not. The thrust of the definition is that it includes every person engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee's internal audit, they remitted the liability. In the circumstances, we agree with the Revenue that the question of limitation, does not arise to hold that the demand herein is time barred as per Section 69 of the Finance Act, 1994. As far as the levy of interest is concerned, Section 75 of the Finance Act, 1994 is the relevant provision, which reads as under : "75. Interest on delayed payment of Service Tax. - Every person, liable to pay the tax in accordance with the provisions of Section 68 or rules made thereunder, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed, shall pay simple interest at such rate not below ten percent and not exceeding thirty six per cent per annum as is for the time being fixed by the Central Government, by Notification in the Official Gazette for the period by which such crediting of the tax or any part thereof is delayed : Provided that in the case of a service provider, whose value of taxable services provided in the financial year does not exceed sixty lakh rupees during any of the financial years covered by the notice or during the last preceding .financial yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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