2016 (9) TMI 736

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rva Seva Sangh (hereinafter referred to as JBSSS) for transportation of sugarcane from the collection centre to their factory.  Appellant paid freight charges to the said JBSSS.  It is the case of revenue that as per provision of Rule 2(1)(d)(v) of Service Tax Rules, 1994, appellant being a factory and registered under Companies Act is liable to pay tax; while it is the case of the appellant that since JBSSS is not issuing any consignment notes, they are not G.T.A and no tax liability arises.  The lower authority has held against the appellant and confirmed the tax dues with interest and also imposed penalties. 3. Learned Counsel appearing for the appellant after taking us through the entire case records submitted that the J .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ugarcane mills and these charges were adjusted against the payment for sugarcane made to the farmers. The point of dispute is as to whether the transporters are Goods Transport Agency as defined under Section 65(50b) of the Finance Act, 1994 and whether the appellant as recipient of the service provided by the transporters would be liable to pay Service Tax in terms of the provisions of Rule 2(l)(d)(v) of Service Tax Rules. 6. In terms of Section 65(105)(zzp), the taxable service means "any service provided to a customer, by a Goods Transport Agency, in relation to transport of goods by road in a goods carriage. "In terms of Section 65(50a) ibid 'Goods Carriage' has the meaning assigned to it in clause 14 of Section 2 of the Motor Vehicle .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sport Agency. A Goods Transport Agency in terms of its definition under Section 65(50b) provides service in relation to transportation of goods under a consignment note which should have the particulars as prescribed in explanation to Rule 4B. In the present case admittedly no consignment notes have been issued. The fortnightly bills cannot be treated as consignment notes, as a consignment note issued by Goods Transport Agency represent its liability to transport the consignment handed over to it to the destination and deliver the same to the consignee and merely a bill issued for transportation of goods cannot be treated as Consignment Note. The fact of non-issue of consignment to M/s. Nandganj is admitted in the show cause notice itself. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X