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2019 (4) TMI 1205 - AT - Service TaxCENVAT Credit - input services - Freight - GTA Service - reverse charge mechanism - HELD THAT:- There is no doubt that the tax liability on consideration for ‘goods transport agency service’ falls upon the recipient of the service. It is also not in doubt that the individual truck operator is outside the pale of the taxable service in section 65 (105) (zzp) of Finance Act, 1994 as it is not the transport per se that is liable to tax but only such transportation as organised through an entity which takes responsibility for the safe delivery of the goods instead of the transporter; the undertaking of such responsibility is evidenced by the issue of ‘consignment note’ and a truck operator, taking such responsibility upon itself, is not the object of the tax - The tax-paying recipient is, undoubtedly, entitled to avail the CENVAT credit of such tax incidence. If the payments made by the appellant were in the nature of financing of the cost of delivery to be deducted subsequently from the dues owed to the cane farmers, it would not have been labelled as ‘freight’ in the books of accounts. At the same time, we are deprived of any certainty that the disputed amount was, indeed, obtained from the final accounts as asserted in the impugned order. We can certainly advert that none of the documents on record are amenable to description as ‘consignment notes’ - the nature, and extent of, expenditure incurred as ‘freight’ needs further scrutiny before it can be subjected to tax with the sure conviction that these were consideration for road transport contracted by the appellant. Appeal allowed by way of remand.
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