TMI Blog2018 (12) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... at the nature of their contracts was works contracts. Further, show cause notice itself mentions that they had entered into contracts with Railways for works contract. The Railways had deducted VAT on composition basis from their bills towards payment of VAT component on the goods supplied by them - the works contract in respect of Railways was excluded from the definition. There is no hesitation in holding that appellant s services were not exigible and they were not required to pay any service tax both before 01.06.2007 and after this date - demand set aside. GTA Service - liability of service tax - Held that:- The appellant admitted that there is liability on some of the transaction of transportation of goods, where they engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials related to those services. As far as materials are concerned, the Indian Railways have deducted an amount of 4% from their bill towards VAT and credited the same to the Government of Andhra Pradesh. Therefore, he asserts that there was no doubt ever that the services rendered by them involved both supply of materials and rendition of the necessary services. He would draw the attention of the Bench to the judgment of the Hon ble Apex Court in the case of Larsen Toubro Ltd [2015 (39) STR 913 (SC)] dated 20.08.2015 in which the Hon ble Apex Court has clearly held that works contract services i.e., those services which involve supply of materials as well as rendering services were brought into tax net only w.e.f. 01.06.2007 with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute that the services rendered by the appellant during the relevant period involved both supply of materials and rendition of services and therefore are in the nature of works contract. The copies of the contracts provided by the learned counsel also clearly indicate that the nature of their contracts was works contracts. Further, show cause notice itself mentions that they had entered into contracts with Railways for works contract. Lastly, the Railways had deducted VAT on composition basis from their bills towards payment of VAT component on the goods supplied by them. It has been held by the Hon ble Apex Court that works contract became exigible to service tax only from 01.06.2007 with the introduction of Sec.65(105)(zzza) and not befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 bills cannot be treated as consignment notes, 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. 8. The transportation of goods by individual truck owners without issue of consignment note, GRNs etc., as prescribed in Rule 4B of the Service Tax Rules, would be transportation and not the service of Goods Transport Agency, which involves not only u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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