TMI Blog2016 (10) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Act, 1994 for providing of service by goods transport agency which is defined in section 65(50b) and that with the recipient not being one of the entities listed in rule 2(1)(d)(v) of Service Tax Rules, 1994, it is the provider of the service who is the designated person liable to pay the tax. As per definition of goods transport agency in section 65(50b) of Finance Act, 1994, an essential characteristic of provider of the service is the issuance of a consignment note. Revenue has resorted to a circular logic by claiming that rule 4B of Service Tax Rules, 2004 requires the goods transport agency to issue a consignment note. This, according to us, is a specious line of reasoning as the provider of goods transport agency service being d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate authority, Commissioner of Central Excise (Appeals), Aurangabad, vide order-in-appeal no. AGS (13) 8/2011 dated 24th January 2011held that individual truck owners are not providers of goods transport agency service , and, relying on Commissioner of Central Excise Customs, Guntur v. Kanaka Durga Oil Products Pvt Ltd [2009 (15) STTR 399 (Tri-Bangalore)], set aside the demand and Revenue is in appeal against that quashing. 2. Revenue claims that decision in re Kanaka Durga Oil Products Ltd has been challenged in the Hon ble Supreme Court. Our decisions are binding on subordinate authorities and the existence of an appeal in which stay has not been obtained not being an impediment, the first appellate authority has taken a course o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The intent and purpose of rule 4B has been misinterpreted by the reviewing authority. 5. The goods transported by the District Supply Officer are for a public service which involves a distribution chain. The distributors are mere designated outlets for the public distribution system and, till the transfer of title of the goods to the intended beneficiaries of the system, the goods are in the possession of the District Supply Officer; consequently, during the transportation stage, the respondent does not acquire any lien on the goods which is implicit in the issue of a consignment note. Therefore, no stretch of imagination can document issued by District Supply Officer conveying the goods transported be construed as a consignment note to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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