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2017 (3) TMI 1786 - HC - Service TaxGTA service - Person liable to pay the service tax - Cooperative Societies - Whether the “person” specified under rule 2(1)(d)(v) of the Service Tax Rules, 1994 read with Section 65(50b) of Finance Act, 1994 are liable to pay “service tax” or not? HELD THAT:- A Goods Transport Agency, i.e., a person who provided service in relation to transport of goods by road and issues consignment note (by whatever name called) when render such service to any cooperative society established by or under any law; or company formed or registered under the Companies Act, 1956; or any body corporate established by or under any law; (or other category or persons detailed in Clause (v) of Rule 2(d), which we do not find applicable in the case in hand), would be liable to pay service tax. In the present case, transporters transferring sugarcane from Cane Collection Centers to sugar mills and presenting bills for such service, squarely satisfy the requirement of Rule 2(d)(v) read with Section 65(50b) of Finance Act, 1994 - the transporters in the present case are clearly covered by the definition of “Goods Transport Agency” hence Assessees are liable to pay service tax being within the definition of “person liable to pay service tax” under Rule 2(d)(v). Mere fact that it is difficult to ascertain how much freight was paid for consignment by Assessee would also not be of any help in the case in hand since that is not a reason for an otherwise applicability of aforesaid provisions to the facts of the case in hand. Appeal allowed - decided in favor of assessee.
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