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2015 (12) TMI 1604 - CESTAT ALLAHABADLevy of service tax - transportation of sugarcane from the cane collection centre to the sugar mill, initially paid by the appellant sugar mill but deducted from the price of the sugarcane payable to the farmer on the basis of an average rate - Held that: - The issue herein has been squarely decided in favour of the appellant in earlier appeal between the parties in the case M/s. Nandganj Sihori Sugar Co. Versus CCE. Lucknow [2014 (5) TMI 138 - CESTAT NEW DELHI], wherein under same facts and circumstances deciding in favour of the appellant, this Tribunal held when the transporter did not issue consignment notes or GRs or challans or any documents containing the particulars, in Explanation to Rule 4B of Service Tax Rules, 1994, the transporters cannot be called Goods Transport Agency and, hence, in the appellant’s case the service of transportation of sugarcane provided by the transporter would not be covered by Section 65(105)(zzp). Accordingly, this Tribunal held that there will be no service tax liability on the appellant sugar mill as they have not received the service from a Goods Transport Agency. In view of this, Tribunal set aside the orders in the earlier appeal allowing the appeal. We also take notice of the fact that under the purchase agreement and the relevant State Act, the price fixed by the State Government of Uttar Pradesh to the farmers for the purchase of sugarcane includes the cost for delivery of sugarcane by the farmer to the sugar mill. Thus, we hold that the actual recipient of the transportation service is the farmer and not the sugar mill, when admittedly transport cost has been recovered from the price of the sugarcane payable to the farmer. In view of this matter, we allow the appeal and set aside the impugned order - decided in favor of appellant-assessee.
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