TMI Blog2018 (3) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... ansport agency is under reverse charge mechanism and has been ensigned under Section 65(50)(b) of the Finance Act 1994 read with the said Rules - service tax liability on goods 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. The demands raised by the lower authorities and confirmed cannot be upheld as identical issue came up before the Tribunal in the case of Essar Logistics Ltd Vs CCE Surat [2014 (6) TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 after referred to as Rules) on the interpretation that appellant having paid the consideration to the transporters they become liable for service tax. It is the case of the appellant that they had only paid the hiring charges and subsequently charged the entire amount plus their commission to their clients who were provided with these vehicles. The adjudicating authority after following the due process of law was not convinced by the defence put up by the appellant and after following due process of law, rejected the contentions raised and confirmed the deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant for transportation of the goods of their clients. He would submit that appellants having paid such transporters for engaging the vehicles is the person who has paid the freight for transportation of goods, hence is liable to discharge the service tax liability. He would rely upon the decision of the Tribunal in the case of Darbar Transport Co Vs CCE, Jaipur [2016(41) STR 320 (Tri-Del)] wherein it was held that hirer of the 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). 5. We have considered the submissions made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s pertinent to reproduce the said rules. Rule 2(1)(d)(v) of Service Tax Rules 1994 defines person liable for paying the service tax as under para (v):- (v) In relation to taxable 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 established by or under any law; f) any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 provision do not indicate that GTA service provider is liable to pay the Service Tax if the consignor or consignee is covered under the entities as indicated under said Rule 2(1)(d)(v). In our view the clarification of the Board cannot go beyond the statutory provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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