Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Ultra Tech Cement Ltd. Versus Commissioner of Central Excise, Kolhapur

2017 (11) TMI 297 - CESTAT MUMBAI

GTA services - reverse charge mechanism - consignment note - case of appellant is that the service provider have not issued any consignment note and hence they will not be covered under the scope of Goods transport Agency - Held that: - reliance placed in the appellant's own case M/s Ultratech Cement Ltd. Versus Commissioner of Central Excise, Kohlapur [2017 (3) TMI 1155 - CESTAT MUMBAI], where it was held that consignment note is misplaced as in this case the transporting companies have only ra .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ju, Member (Technical) Shri Vinay Jain, C.A. for Appellant Shri M.P. Damle, Asstt. Commr. (A.R) for Respondent ORDER Per : Ramesh Nair The facts of the case is that the Appellant had engaged with M/s New Konkan Transport and M/s Yashashree Transport transporting of clinker, which is their raw material for manufacture of Cement from Bhagwati Bunder jetty to the factory from time to time for which the Appellants were issued work orders with specific terms & Conditions which stipulates that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Adjudicating Authority confirmed the demand of Service Tax and imposed Penalties under section 76 and 77 of the Finance Act, 1994. Being aggrieved with Order-in-Original, Appellant filed appeal before Commissioner (Appeals) who upheld the OIO No.RTN/97/ADJ/11-12 dt. 22.09.2011 and rejected the Appeal, therefore Appellant are before us. 2. Shri Vinay Jain Ld. C.A., appearing on behalf of the Appellant submits that the service provider have not issued any consignment note and hence they will not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d. Vs CCE, Raipur - 2014-TIOL-1554-CESTAT-Del. e. Bhima Sahakari Sakhar Karkhana - 2016-41-STR-438-Tri-Mum f. Lakshminarayan Mining Co. Vs CCE Banglore - 2009-16-STR-691-Tri-Bang He further submits that the service was received by individual truck owners not covered by Goods Transport Agency. This has been held in following judgments:- a. Nandganj Sihori Sugar Co Ltd. Vs CCE, Lucknow-2014-34-STR-850-Tri-Del b. Bhima Sahakari Sakhar Karkhana - 2016-41-STR-438-Tri-Mum c. Bellary Iron Vs CCE, Belga .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aken by the service provider are in nature of Cargo Handling Service and not GTA therefore the liability to pay Service Tax will not be on Appellant under reverse charge mechanism. 2.1. He further submits that the Appellant is manufacturer of excisable goods and discharged excise duty in cash. If Service Tax is payable on GTA the amount of such service tax is available as cenvat credit to the Appellant and the entire exercise is of revenue neutral. 2.2. He further submits that the issue involved .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and perused the records. 6.1 We find that the first appellate authority as well as the adjudicating authority have erred in coming to a conclusion that in this case the service tax liability arises. 6.2 It is seen from the records that the movement of cement clinkers from jetty to the manufacturing premises of the appellant is done by the trucks of two transport companies. It is also undisputed that cement clinkers is received at the jetty from the factories of the appellant. We find from the re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ufacturing premises by these two transport companies. We find that as per Rule 4B of Service Tax Rules, 1994 the goods transport agency shall issue consignment note to the respondent in relation to transport of goods by road in a goods carriage. The said Rule 4B is reproduced:- 4B. Any goods transport agency which provides service in relation to transport of goods by road in a goods carriage shall issue a consignment note (to the recipient of service. Provided that where any taxable service in r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency.] 6.3 It can be seen from the above reproduced Explanation to the Rule, consignment note should have specific particulars, the provisions of Section 65(50b) talks about the issuance of the consignment note. The interpre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e the Tribunal in the case of Nandganj Sihori Sugar Co. Ltd. (supra) wherein the Tribunal after analyzing the provisions of the service tax liability on goods transportation agency under Finance Act, 1994 and reverse charge mechanism, in paragraph 6 has held as under:- 6. In terms of Section 65(105)(zzp), the taxable service means "any service provided to a customer, by a Goods Transport Agency, in relation to transport of goods by road in a goods carriage." In terms of Section 65(50a) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d 3-12-2004, on the payments made by them to transporters against the fortnightly bills being presented by them. While admittedly no consignment notes or GR's have been issued by the transports, according to the Department the Transporter's bills are in the nature of the consignment notes. Under Rule 4B of the Service Tax Rules, 1994, any Goods Transport Agency which provide service in relation to transport of goods by road in a goods carriage shall issue a consignment note to the custom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ds 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 terms 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has not been refuted. 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version