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2017 (3) TMI 940 - CESTAT NEW DELHILiability of tax - GTA service - sub-contract work - reverse charge mechanism - Held that: - in the case of GTA service the levy of service tax has been shifted from the service provider to the person who is liable to pay freight where consignor or consignee of the goods is covered under any of the seven specified categories - From the agreement entered into between the appellant and M/s Lee & Muirhead Pvt. Ltd, we note that the latter will be entitled to the payment of ₹ 927/- per freight tonne which included ₹ 770/- for transportation and balance for other services. From this, it is evident that it is the appellant who pays freight for the transportation of the goods - the appellant being a public limited company is covered within one of the seven categories specified where the service tax liability will be on the consignor / consignee. Further, the freight is also borne by the appellant. There is no doubt that the consignee is M/s NTPC. Consequently, the liability for payment of service tax under GTA in this case falls on the appellant in terms of Rule 2(d)(v) of Service Tax Rules, 1994. Appeal dismissed - decided against appellant.
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