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2016 (11) TMI 1437 - HC - Service TaxPrinciple of patent illegality - GTA services - whether the claimant is liable to pay service tax, as per the terms of the contract? - Held that: - Clause 21 of the contract provides that service tax/sales tax applicable if any, on chartered hired payments received by the contractor under this contract will be to the account of ONGC. It also further provides that service tax if any applicable and/or levied on charter hire payment against this contract/agreement will be reimbursed by ONGC at actual against documentary evidence. Therefore, for the charter hire payment charges, ONGC has to bear service tax as per the above Clause 21 of the Contract. The Tribunal rejected the contention of the ONGC that the service comes under Goods Transport Agency pointing out that as per the definition under Section 65(50b) of the Finance Act, 1994, the service provider should not only transport goods by road but also issue consignment note. The Tribunal also pointed out that the claimant had never issued consignment note and the consignor as well as the consignee in the transport is only ONGC and therefore, ONGC alone is liable to pay service tax if payable. Thus the Tribunal decided the nature of transaction only to conclude whether the claimant is liable to pay as per the terms of the contract and it has not gone into the question whether transaction under the contract is amenable for service tax or not. Appeal dismissed - decided against appellant.
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