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2010 (1) TMI 131 - AT - Service TaxGTA service - The Department was of the view that the appellants who reimbursed freight charges to the suppliers are receiver of GTA service and accordingly they would be liable to pay service tax on the transportation charges. It is on this basis that the show cause notices were issued to the appellants for recovery of service tax on GTA alongwith interest and also imposition of penalty on them for non-payment of service tax. The service tax demands were confirmed by the Asstt. Commissioner and on appeal, the Asstt. Commissioner’s orders were upheld by the Commissioner (Appeals). Held that: the appellants have only reimbursed the freight expenses incurred by the suppliers and since the appellant’s contracts that the suppliers were on F.O.R basis, it is the suppliers who had engaged the transporters to arrange the transportation of the goods from Nepal upto the appellant’s factory premises and it is the supplier who have made payment to the transporters – prima-facie, the appellant can not be treated at recipient of GTA service - pre-deposit of demand, interest and penalty is waived
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