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M/s Srivalli Shipping & Transport Pvt Ltd Versus Commissioner of Central Excise, Visakhapatnam

2017 (11) TMI 291 - CESTAT HYDERABAD

GTA services - cargo handling services - It is alleged in the SCN that the appellant herein had engaged vehicles/trucks from various transport organisations and were sent to their customers for transportation of goods - whether appellant is required to discharge the service tax liability under the category of goods transport agency or otherwise? - reverse charge mechanism - Held that: - service tax liability on goods transport agency services is under reverse charge mechanism more so if the cons .....

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he legislative intent is to tax only the services provided by a Goods Transport Agent to a customer and not the owner. - Appeal allowed - decided in favor of appellant. - ST/22203/2014-DB, ST/30416/2016, ST/30417/2016 & ST/30715/2017 - A/31636-31639/2017 - Dated:- 7-9-2017 - Mr. M. V. Ravindran, Member (Judicial) And Mr. Madhu Mohan Damodhar, Member (Technical) Mr. M.S. Nagaraja, Adv for the Appellant Mr. Srinivasa Rao, A.R. for the Respondent ORDER [Order Per : M. V. Ravindran] All these ap .....

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ent. It is alleged in the show-cause notice that the appellant herein had engaged vehicles/trucks from various transport organisations and were sent to their customers for transportation of goods. Appellant paid the transport cost but hired them the vehicles/lorries. It is the case of the Revenue that appellant being The person who had paid the transporters for the vehicles given to them, is required to discharge the service tax liability as per Rule 2(1)(d) of the Service Tax Rules 1994 (herein .....

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ss of law, rejected the contentions raised and confirmed the demands raised with interest and also imposed penalties. In one of the appeals, the 1st appellate Authority has confirmed the demand of ₹ 7,38,509/- on the same ground and also imposed equivalent penalty. 4. Learned counsel after giving the overall picture of the activities of the appellant submits that they themselves are transporters and do not avail services of any other transporters and as and when they fall short of their ow .....

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es documents like the bills raised by them in their appeal memoranda. He would also submit that similar issue came up before the Bench in the case of Essar Logistics Ltd., Vs CCE Surat [2014(33)STR 588(T-Ahmd)] and in the case of MSPL Ltd Vs CCE Belgaum [2009(13) STR 554 (Tri-Bang)] wherein it was held that liability to pay service tax is cast upon the person who is paying the freight as per the provisions. 5. Learned A.R. on the other hand submits that the appellant has engaged the services of .....

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vehicle from other transporters is liable to be taxed in the hands of the person who hired the said vehicles. Same is the view, according to him expressed by the Tribunal in the case of Rajalakshmi Paper Mills Pvt Ltd Vs CCE Madurai [2011 (22)STR 635 (Tri-Chennai). 6. We have considered the submissions made by at length by both sides and perused the records. 7. Undisputed facts are appellant is transporter themselves and raises bills on their clients for transportation of the goods and freight .....

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g the amounts from their clients, appellants settled the bills of the transporters form whom he had engaged the vehicles. It is also undisputed that on these transactions, the appellant's clients discharged the service tax liability as consignor or as a consignee., On this factual matrix, we have to come to a conclusion whether appellant is required to discharge the service tax liability under the category of goods transport agency or otherwise. 8. The definition of a person liable to discha .....

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axable 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 established by or 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 est .....

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transport agency services is under reverse charge mechanism more so if the consignor or consignee falls in one of the category as indicated hereinabove or a person who is liable to pay freight charges. It is on record that appellant herein does not discharge the freight charges but claims the amount from their client who pays it to the transporters from whom they engaged the vehicles. In our view, the demands raised by the lower authorities and confirmed cannot be upheld as identical issue came .....

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ght and hence are liable to discharge the service tax liability. In the case in hand before us it is undisputed that EOL is a refinery and a factory and company established and covered under the Factories Act as well as Companies Act. We find that the adjudicating authority has relied upon the C.B.E. & C. Circular dated 17-12-2004 to confirm the demand of Service Tax on the appellant with reference to paragraph No.4.5, in our considered view, as already reproduced hereinabove the statutory p .....

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