TMI Blog2014 (5) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Nandganj is admitted in the Show Cause Notice itself - The transportation of goods by individual truck owners without issue of consignment note, GR s & billties etc. as prescribed in Rule 4B of the Service Tax Rules, would be simple transportation and not the service of Goods Transport Agency which involves not only undertaking the transportation of the goods handed over to it but also undertaking delivery of the goods to the consignee and also temporary storage of the goods till delivery. When the transports did not issue consignment notes or GRs or Challans or any documents containing the particular as prescribed in Explanation to Rule 4B of the Service Tax Rules, 1994, the Transporters cannot be called ‘Goods Transport Agency’ an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gement. The transportation of sugarcane from various cane centers to the sugar mills, was arranged by the appellant s by arranging the transport and the charges for the same at an average rate were deducted from the price for the sugarcane paid to the farmers. The transporters engaged by the appellant s were individual truck owners who charged for transportation of the sugarcane from the sugar cane collection centers to the respective sugar mills by presenting fortnightly bill and as such no consignment notes were issued. The Department was of the view that the appellant sugar mills have received the service of Goods Transport Agency taxable under section 65(105)(zzp) of Finance Act, 1994 and accordingly the service tax was required to be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudicating Authority for re-quantifying the service tax demand. Against this order of the Commissioner (Appeals) while M/s. Nandganj have filed the Appeal No. ST/573/08, the Department has filed the appeal No. ST/556/08 against the part of the order extending the benefit of Notification No.32/04-ST on the ground that M/s. Nandganj do not satisfy the conditions of this Notification, inasmuch as no cognizance can be taken of the declaration regarding non-availment of Cenvat Credit by the transporters, as no consignment notes had been issued. 1.4 Against the Assistant Commissioners Order in case of M/s. Bajpur, an appeal was filed before the Commissioner(Appeals) who vide order-in-appeal dt.16.06.08 upheld the Assistant Commissioners Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gency means any commercial concern which provides service in relation to transport of goods by road and issues consignment note by whatever name called, that the service tax under section 65(105)(zzp) is attracted in respect of service provided by a Goods Transport Agency which has issued consignment notes for transportation of goods, that in these cases no consignment notes have been issued, that this fact is clear in the case of M/s. Nandganj from para 3 of the statement of facts in the Revenues appeal, wherein it is mentioned that Transporters do not issue any GRs and challans for transportation of sugarcane and only issue the bills against which the payment is made, that this fact is also clearly mentioned in para 5 of the Show Cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tement under Notification No.32/04-ST as the conditions of this exemption are not satisfied. 5. We have considered the submissions from both the sides and perused the records. The appellant incurred expenditure on transportation of sugarcane from the cane collection centers to their sugarcane mills and these charges were adjusted against the payment for sugarcane made to the farmers. The point of dispute is as to whether the transporters are Goods Transport Agency as defined under section 65(50b) of the Finance Act, 1994 and whether the appellant as recipient of the service provided by the transporters would be liable to pay service tax in terms of the provisions of Rule 2(1)(d)(v) of Service Tax Rules. 6.. In term of Section 65(105)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re transported, details of goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or Goods Transport Agency. Thus mere transportation of the goods in a Motor Vehicle is not the service provided by a Goods Transport Agency. A Goods Transport Agency in term of its definition under section 65(50b) provides service in relation to transportation of goods under a consignment note which should have the particulars as prescribed in explanation to Rule 4B. In the present case admittedly no consignment notes have been issued. The fortnightly bills cannot be treated as consignment notes, as a consignment note issued by Goods Transport Agency represent its liability to transp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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