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TMI Blog2008 (9) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 2. Mr. M.S. Nagaraj, the learned Advocate appeared on behalf of the appellants and Ms. Joy Kumari Chander, the learned JCDR, for the Revenue. 3. We heard both sides. 4. The appellants are actually manufacturers of Oxygen and Nitrogen. They transport the cylinders to their buyers in their own vehicle and collect the transportation charges. Revenue proceeded against them on the ground that they are providing the services of "Goods Transport Agency". Therefore, they are liable to discharge the service tax on the freight charges collected by them from their buyers. The Original Authority in his order confirmed the demand of service tax on the appellants. He demanded an amount of Rs. 12,11,140/- on the ground that the appellants are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arriage cannot be said to be their own agents providing the services of GTA to themselves as customers in relation to transportation of goods by road in goods carriage. b) The CBEC vide Circular No. 95/6/2007-ST dated 11.06.2007 has clarified in para 1, the nature and scope of the service of GTA. The CBEC has clarified that consignment notice document issued by a goods transport agency against receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported. It was submitted that Notification No. 29/2008-ST dated 26.06.2008 exempts the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, the learned Advocate referred to our attention Rule 2 (1) (d) (v) of the Service Tax Rules, 1994 wherein the person liable to pay service tax is defined. Person liable to pay service tax means the person who pays or is liable to pay the freight. Rule 2 (1) (d) (v) is reproduced herein below: (v) in relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is, (a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948); (b) any company [formed or registered under] the Companies Act, 1956 (1 of 1956); (c) any corporation established by or under any law; (d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law correspon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntions in the impugned order. 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 freight. It is very clear in terms of Rule 2 (1) (d) (v) that the liability to pay service tax is cast on the person who pays the freight. In this case the person who pays the freight is the buyer. Therefore, the appellant has no liability to pay the service tax. In such circumstances, the action of the Commissioner (Appeals) in setting aside the original order is correct, but there is absolutely no need for remanding the matter. The appellant has no liability at all to pay the service tax. Hence, the appeal is allowed with conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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