2017 (6) TMI 327

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..... nor or consignee falls in all the categories (a) to (g) prescribed thereunder, any person who pays or liable to pay freight would be liable to pay service tax - "any person" referred in Rule 2(1)(d)(v) is not qualified by category (a) to (g) of the Rules and therefore even individual or partnership firm can fell under the category of "any person" specified in the said rule - appeal allowed - decided in favor of Revenue.
Mr Ramesh Nair, Member(Judicial) And Mr. Raju, Member (Technical) Shri. M.P. Damle, Asstt. Commissioner(A.R.) for the. Appellants None for the Respondent ORDER Per: Raju This appeal has been filed by the Revenue against dropping of demand against M/s. V.H. Patel & Company. 2. M/s. V.H. Patel & Company are engaged in .....

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..... s under the category (a) of Rule 2(1)(d)(v) of Service tax Rules, 1994 and therefore liable to pay service tax under the goods Transport Agency Services. Shri. Ashokbhai Patel partner of the respondent was also partner in M/s. Ashok Transport. It was argued by the respondent that freight is paid by consignee and therefore respondent are not liable to pay service tax. Ld. Commissioner(Appeals) after examining above held that the order in original confirming demand of service tax is not maintainable and allowed the appeal of the respondent. 3. Ld. AR. argued that impugned order erroneously held that persons who pays or liable to pay freight has to be anyone of the categories (a) to (g) specified under Rule 2(1)(d)(v). He argued that persons .....

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..... rsons liable to pay service tax. It is specified that in respect of taxable services provided or agreed to be provided by goods transport agency, where the consignor or consignee falls in all the categories (a) to (g) prescribed thereunder, any person who pays or liable to pay freight would be liable to pay service tax. The plain reading of the above provisions shows that category (a) to (g) prescribed in the said rule is only in relation to consignor or consignee of the goods in whose case liability arises and has nothing to do with the person who is liable to pay service tax. In other words "any person" referred in Rule 2(1)(d)(v) is not qualified by category (a) to (g) of the Rules and therefore even individual or partnership f .....

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