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2022 (1) TMI 1127 - AT - Service TaxLevy of service tax - donations received by the appellant from its members and on freight charges - reverse charge mechanism - applicability of Notification dated 26.09.2016 from 01.07.2012 to 20.10.2015 and Notification dated 20.06.2012 w.e.f. 21.10.2015 - HELD THAT:- The appellant is registered under section 12AA of the Income Tax Act and the education and training in yoga provided by the appellant is towards the activity of advancement of yoga. Thus, as both the conditions are satisfied by the appellant, the membership donations collected by the appellant would be exempt from payment of service tax for the period from 01.07.2012 to 20.10.2015. Whether the appellant is liable to pay service tax on the freight amount paid by it on a reverse charge mechanism? - HELD THAT:- ‘Goods transport agency’ service has been defined in section 65(26) of the Finance Act to mean any person who provides service in relation to transport of goods by road and issues consignment notes, by whatever name called. In the present case, consignment notes have not been issued and so the activities cannot be said to be covered under ‘goods transport agency’ services - In this connection it would be useful to refer to the decision of the Tribunal in BHORAMDEO SAHAKARI SHAKHAR UTPADAM KARKHANA VERSUS COMMISSIONER OF CUSTOMS, CENTRAL EXCISE & SERVICE TAX, RAIPUR [2019 (10) TMI 1416 - CESTAT NEW DELHI], wherein it has been held that service tax can be levied only if consignment notes are issued. Thus, service tax liability could not have been fastened on the appellant under the reserve charge mechanism. Appeal allowed - decided in favor of appellant.
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