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2016 (8) TMI 946 - AT - Service TaxDemand of tax and penalty – reverse charge mechanism – manufacture of grey fabrics – import of yarn from Nepal – separate invoice raised for expenses like transportation, clearance expenses etc – is appellant receiving GTA services from exporter? - Notification No. 35/04-S.T - Held that: - the contract of appellant with the Nepalese suppliers is for supply of yarn and not for providing any particular service. Transport of goods is an activity incidental to the supply of goods for which Nepalese suppliers has engaged transporters. Nepalese suppliers had not acted as the agents of the appellants for arranging transportation from Nepal border to the factory premises of the appellants. Just because the Nepalese suppliers had billed the appellants separately for transportation from Nepal border to factory premises alongwith other expenses, they do not become the agents of the appellants. In view of this, the appellants cannot be treated as recipients of GTA services in terms of Notification No. 35/04-S.T. – appellant not liable to pay service tax – appeal allowed – decided in favor of appellant.
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