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2017 (11) TMI 656 - AT - Service TaxGTA Service - transportation of sugarcane from collection centres to the factory - Revenue made out a case that as the recipient of services for transportation of sugarcane from collection centres to the factory, the Appellant was liable to pay service tax on the amounts paid to the transporters - Held that: - the definition of “Goods Transport Agency” under Section 65(50b) of Finance Act, 1994 and provision of Rule 4A of Service Tax Rules are logically inconsistent. The entry in the Act defines “Goods Transport Agency” as one which issues consignment notes and thereafter Rule 4B says that “Goods Transport Agency” have to issue consignment note. So which criteria have to be satisfied first is not clear. That is to say if a goods transport operator does not issue consignment note he does not come within the meaning of “Goods Transport Service” and then the requirement under Rule 4B also is not enforceable. The provisions of Service Tax are not attracted in the transaction involved, as the appellant have only acted as a facilitator for the farmer for quick and speedy transport of sugarcane to the factory to ensure more effective recovery of sugar. Appeal allowed - decided in favor of appellant.
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