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2012 (10) TMI 159 - AT - Service TaxLevy of service tax on the Chini Mills – alleged that goods transport agency service was availed by the chini mill - when the sugar cane is transported from the collection centre to the factory, service of truck operators, Bullock Carts, Tractors are availed - When the payment of sugar cane is made to farmers, deduction is made from their bills towards transport cost etc. and farmer who bears the transport cost, the appellant does not bear such cost in respect of their supplies – Held that:- Transport cost incurred by farmers to bring the collected sugar cane to factory does not exceed ₹ 1500/- for which there shall be no levy following the spirit to Notification No.34/04 - sugar cane transported through goods carriage from sugar cane centre to the factory either may be in different consignments or may be in one consignment. The assessees are required to explain their proper defence because legislature did not intend the small transporter to be brought under the fold of law - notifications being beneficial in nature and touches poor farmers, it cannot be said that there was mala fide to suppress the facts and figures because the mode of transport of sugar cane in sugar industry is well known to the society – matter remanded back to Adjudicating Authority
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