TMI Blog2015 (5) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... ght to the transporter. - they have taken reimbursement from the consignee after paying freight to the transporter. The argument that, since they were not liable to pay the freight to the transporter, they are not liable for service tax is not acceptable - appellant is legally responsible to discharge the service tax. - decision of S.R. Drugs [2011 (6) TMI 493 - CESTAT, MUMBAI] distinguished - Decision in the case of Essar Logistics [2014 (6) TMI 763 - CESTAT AHMEDABAD] followed - Decided against assessee. - Appeal No. ST 39/12-Mum - - - Dated:- 16-1-2015 - Ramesh Nair, Member (J),J. For the Appellants : Shri A.V. Naik, Advocate For the Respondents : Shri A.B. Kulgod, Assitant Commissioner (AR) ORDER The appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portation charges were paid by the appellant to the transporter and subsequently they have taken the reimbursement from the consignee. It is his submission that since the transportation charges was the liability of the consignee and they have only facilitated to the consignee and subsequently taken the reimbursement, the consignee is the person who is liable to pay the service tax and not the appellant. He has placed reliance on the judgment of the Tribunal in the case of S.R. Drugs Pvt. Ltd. vide order No. A/261/11/SMB/C-IV dated 30.6.2011, wherein the identical issue has been decided by the Single Member Bench in favour of the assessee. 4. On the other hand, Shri A.B. Kulgod, learned Assistant Commissioner (AR), appearing on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to service provided by a goods transport agency, where the consignor or consignee of goods is,- (a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948); (b) any company formed or registered under the Companies Act, 1956 (1 of 1956) (c) any corporation established by or under any law; (d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; (e) any co-operative society established by or under any law; (f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; or (g) any body corporate established, or a partnership firm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponsible to discharge the service tax. 6. As regards the reliance placed by the learned counsel on the judgment of S.R. Drugs (supra), I am of the view that the Division Bench of this Tribunal in the case of Essar Logistics (supra) has taken a different view and held as under:- 9. On a very careful consideration of the entire issue, we find that the appellants transport the goods in their own vehicle to the buyer. The buyer is a person who actually pays the freight. It is very clear in terms of Rule 2(1)(d)(v) that the liability to pay service tax is cost (sic) (cast) on the person who pays the freight. In this case the person who pays the freight is the buyer. Therefore, the appellant has no liability to pay the service tax. In such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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