Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1281 - AT - Service TaxGTA service - reverse charge mechanism - After collecting the amounts from their clients they pay the charges to the transporters from whom the vehicles were engaged and service tax of entire freight charges for the amounts billed by appellants is discharged by their clients under reverse charge mechanism as a recipient of GTA services - whether appellant is required to discharge the service tax liability under the category of goods transport agency or otherwise? Held that: - The definition of a person liable to discharge service tax liability under goods transport agency is under reverse charge mechanism and has been ensigned under Section 65(50)(b) of the Finance Act 1994 read with the said Rules - service tax liability on goods transport agency services is under reverse charge mechanism more so if the consignor or consignee falls in one of the category as indicated hereinabove or a person who is liable to pay freight charges. It is on record that appellant herein does not discharge the freight charges but claims the amount from their client who pays it to the transporters from whom they engaged the vehicles. The demands raised by the lower authorities and confirmed cannot be upheld as identical issue came up before the Tribunal in the case of Essar Logistics Ltd Vs CCE Surat [2014 (6) TMI 763 - CESTAT AHMEDABAD], where it was held that it is very clear that the legislative intent is to tax only the services provided by a Goods Transport Agent to a customer and not the owner. - Therefore, the appellant has no liability to pay the service tax. Appeal allowed - decided in favor of appellant.
|