TMI Blog2018 (1) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... so paid does not call for any adverse action on them - appeal allowed. - Misc Application No. E/Misc/70288/2017 in Appeal No. E/70045/2016-EX[SM] - Final Order No. 71970/2017 - Dated:- 20-12-2017 - Mr. Anil Choudhary, Member ( Judicial ) Shri Kapil Vaish (CA) for Appellant Shri Mohd Altaf (Asstt. Commr.) AR for Respondent ORDER Per : Anil Choudhary The aforesaid appeal No. E/70045/2016-EX[SM] has been filed by the appellants against Order-in-Appeal No. 377-CE/APPL-LKO/LKO/2015 dated 29.09.2015. 2. The brief facts of the case are that the appellants are engaged in manufacturer of electric transformer falling under Chapter Heading 8505 of Central Excise Tariff Act, 1985. Appellants enter into the agreements with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y by disallowing Cenvat Credit availed on transportation service. In view of the said dispute, appellants vide letter dated 11.10.2013 to the department contended that the appellants activity of arranging transportation of finished goods was like an activity of providing Goods Transport Agency Service. They were hiring trucks from third parties and charging freight from the customers. All the customers of the appellants are Power Corporation and in terms of Rule 2(1)(d) of Service Tax Rules, 1994, these Power Corporations were liable for payment of service tax. It was also submitted that the services of the other transporter was not liable taxable in view of SI. No. 22 (b) of Notification No. 25/2012 which grants exemption from payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods transport agency service, service tax is payable by the person who prays the freight. In the present case, I find that freight is ultimately paid by the power corporation. The appellants role is like a transport agency. They have been hiring vehicles from SS Road Lines and other transporters. Therefore under the scheme of collection of tax on transportation of goods by road, service tax cannot be demanded from appellants. From the perusal of contract provided by the appellants, it is clear that the consignee M/s Madhyanchal Vidyut Vitran Nigam Ltd is a corporation and is one of the specified person. Therefore service tax if any would be payable by them. It cannot be the department s case that service tax is to be first paid by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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