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2023 (6) TMI 302 - CESTAT CHENNAILevy of Service Tax - GTA Services - goods are transported by rail - liability of appellant to pay tax on Freight Charges - consignor has discharged service tax on freight charges - applicability of Reverse Charge Mechanism - period 1.6.2006 to 16.8.2006 - Extended period of limitation - demand of service tax with interest and equal penalty under section 78 of the Finance Act, 1994 - HELD THAT:- The appellant has collected freight charges only for transportation of goods by road from the service recipient. They had to opt for transportation of goods by rail due to unforeseen circumstances such as unavailability of lorries. The intention between the parties, namely service recipient and service provider, was not to provide transportation of goods by rail. From the invoices issued by the appellant to the service recipient namely M/s. Sterlite Industries (India) Ltd., it is seen that the appellant has collected only freight charges for transportation by road as agreed between the parties. It is also seen mentioned in the invoices that the service tax is payable by consignor. Undisputedly, the consignor, namely, M/s. Sterlite Industries (India) Ltd. has discharged the service tax on the freight charges for transportation of goods by road. Merely because the appellant had to use the rail transportation in certain occasions, it cannot be said that they have provided services of transportation of goods by rail. Further, the service tax on the rail freight charges also has been discharged. For these reasons, it is found that there is no legal basis for the demand raised in the Show Cause Notice - the demand cannot sustain and requires to be set aside. Appeal allowed.
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