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TMI Blog2017 (11) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... reight charges. It is on record that appellant herein does not discharge the freight charges but claims the amount from their client who pays it to the transporters from whom they engaged the vehicles - identical issue decided in the case of ESSAR LOGISTICS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, SURAT [2014 (6) TMI 763 - CESTAT AHMEDABAD], where it was held that it is very clear that the legislative intent is to tax only the services provided by a Goods Transport Agent to a customer and not the owner. Appeal allowed - decided in favor of appellant. - ST/22203/2014-DB, ST/30416/2016, ST/30417/2016 & ST/30715/2017 - A/31636-31639/2017 - Dated:- 7-9-2017 - Mr. M. V. Ravindran, Member (Judicial) And Mr. Madhu Mohan Damodhar, Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with these vehicles. The adjudicating authority after following the due process of law was not convinced by the defence put up by the appellant and after following due process of law, rejected the contentions raised and confirmed the demands raised with interest and also imposed penalties. In one of the appeals, the 1st appellate Authority has confirmed the demand of ₹ 7,38,509/- on the same ground and also imposed equivalent penalty. 4. Learned counsel after giving the overall picture of the activities of the appellant submits that they themselves are transporters and do not avail services of any other transporters and as and when they fall short of their own vehicles, they engaged vehicles from other transporters and billed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the hands of the person who hired the said vehicles. Same is the view, according to him expressed by the Tribunal in the case of Rajalakshmi Paper Mills Pvt Ltd Vs CCE Madurai [2011 (22)STR 635 (Tri-Chennai). 6. We have considered the submissions made by at length by both sides and perused the records. 7. Undisputed facts are appellant is transporter themselves and raises bills on their clients for transportation of the goods and freight charges paid by the clients which accounted in their client records and their clients discharge the service tax liability as consignor or consignee as the case may be. Appellant engaged various vehicles whenever there is shortage of their own vehicles and engaged such vehicles for transportation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablished by or under any law; d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; e) any co-operative society established by or under any law; f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; or g) any body corporate established, or a partnership firm registered, by or under any law, any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage; 9. Plain reading of the above reproduced Rules would indicate that service tax liability on goods t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry provision do not indicate that GTA service provider is liable to pay the Service Tax if the consignor or consignee is covered under the entities as indicated under said Rule 2(1)(d)(v). In our view the clarification of the Board cannot go beyond the statutory provisions, which clearly mandate that Service Tax liability has to be discharged either by consignor or consignee, if he falls under the specified category. 10. Similar views have been expressed by the Tribunal in the case of MSPL Ltd wherein the Bench in paragraph-9 has held as under:- 9. On a very careful consideration of the entire issue, we find that the appellants transport the goods in their own vehicle to the buyer. The buyer is a person who actually pays the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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