9911796707
TMI Blog2017 (6) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... viding GTA service to the factory. The contention of the department is that appellants had paid the amount of GTA service to the truck and tractor owners. However, they have not paid service tax of the transportation of sugarcane accordingly, the demand of service tax on GTA service was confirmed by the adjudicating authority. Aggrieved by the Order-in-Original, the appellants filed the present appeal. 2. Shri V.B. Gaikwad, Id. counsel on behalf of the appellants submits that in respect of transportation of sugarcane by truck and tractor owners they have never issued any bill or consignment note to the appellants. He submits that the consignment note is vital condition for charging service tax for the service of GTA. If the consignment note is not issued, the service is not covered under GTA. Accordingly no service tax can be demanded. He further submits that all the truck and tractor owners are the members of the appellants Kharkhana, being a cooperative society, accordingly, there was no service element involved as the member was working for his own society. He submits that on the identical issue this Tribunal has passed various decisions which are cited below:- a) Nandgan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the appeal We also take notice of the fat that under the purchase agreement and the relevant State Act, the price fixed by the State Government of Uttar Pradesh to the farmers for the purchase of sugarcane includes the cost for delivery of sugarcane by the farmer to the sugar mill. Thus, we hold that the actual recipient of the transportation service is the farmer and not the sugar mill, when admittedly transport cost has been recovered from the price of the sugarcane payable to the farmer. In view of this matter, we allow the appeal and set aside the impugned order. The appellant shall be entitled for consequential benefit, in accordance with law. (ii) In Nandganj Sihori Sugar Co. Ltd 2014 (34) STR 850, the Tribunal held as under:- 5 We have considered the submissions from both the sides and perused the records. The appellant incurred expenditure on transportation of sugarcane from the cane collection centers to their sugarcane 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 wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes, 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. In case of M/s. Bajpur though it is not mentioned in the show cause notice, this plea has been made by the Appellant and the same has not been refuted. The transportation of goods by individual truck owners without issue of consignment note, GR's billties, etc. as prescribed in Rule 4B of the Service Tax Rules, would be simple transportation and not the service of Goods Transport Agency which involves not only undertaking the transportation of the goods handed over to it but also undertaking delivery of the goods to the consignee and also temporary storage of the goods till delivery. When the transports did not issue consignment notes or GRs or Challans or any documents containing the particular as prescribed in Explanation to Rule 4B of the Service Tax Rules, 1994, the Transporters cannot be called ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Rules, 1994, any Goods Transport Agency which provide service in relation to transport of goods by road in a goods carriage shall issue a consignment note to the customer. In term of Explanation to Rule 4B, Consignment Note' means - a document issued by Goods Transport Agency against the receipt of goods for the purpose of its transport by road in a goods carriage, which is serially numbered and contains the name of consignor and consignee, registration number of the goods carriage in which goods are transported, details of goods transported, details of the place of origin and destination, person liable for paying Service Tax whether consignor, consignee or Goods Transport Agency. Thus mere transportation of the goods in a Motor Vehicle is not the service provided by a Goods Transport 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 iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
