TMI Blog2019 (7) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... , that the blanket intent to tax the operators led to widespread agitation and, conscious of the problems of implementation, the Central Government, upon reintroduction of the levy, restricted it to agencies. Also, the reference to goods consignment number in the trip sheet does not constitute the issue of goods consignment note which is essential pre-requisite for taxation of the service. The activity performed for the appellant by transporters falls outside the ambit of section 65(105)(zzp) of Finance Act, 1994 and is not taxable in their hands - Appeal allowed - decided in favor of appellant. - ST/620/2008-DB - Final Order No. 20242/2019 - Dated:- 7-3-2019 - MR. S.S GARG, JUDICIAL MEMBER And MR. C. J. MATHEW, TECHNICA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 009 (16) STR 691 (Tri.-Bang.)] was dealing with the claim of the appellant that the activities rendered were not exigible to service tax. The Tribunal, on that occasion, placing substantial reliance on the Budget Speech of the Finance Minister, interpreted legislative intent as non-taxability of truck owners/truck operators. The Hon ble High Court of Karnataka, on an appeal by Revenue, upheld the order after determining the following question of law: (i) Whether the order of the CESTAT, based solely on the speech of the Hon ble Finance Minister made while introducing the Finance Bill, 2004 and not as per the statutory provisions of law was right in holding that the Respondents were not liable to pay Service Tax under the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of iron ore from their mines to the port of export at New Mangalore. It is the claim of the Learned Counsel for the appellant that the trucks are hired by themselves and the iron ore for export are loaded on to them for carrying to the port of export. He contends that there is no agency function involved as the goods are loaded on vehicles hired by them and, hence, there is no third party involved. He further contends, after taking us through the narrative of the history of taxation of goods transport under Finance Act, 1994, that it was not the intent of the Government to tax goods transport operators but that the tax leviability was to devolve on agencies that perform the function of acceptance of cargo for transport under co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1994 and find that 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 determined by issuance of consignment note under the statute, it is not within the ambit of a subordinate legislation to create the class of taxable persons by imposing a condition that would, perforce, bring such persons within the tax net. The intent and purpose of Rule 4B has been misinterpreted by the reviewing authority. 5. The goods transp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and an individual truck operator who does not accept such responsibility, is merely performing the activity of transport of goods which is not the subject of the tax. It is, of course, necessary to point out, from the history of the tax on this service, that the blanket intent to tax the operators led to widespread agitation and, conscious of the problems of implementation, the Central Government, upon reintroduction of the levy, restricted it to agencies. 10. It is clear from the records that the invoices that have been relied upon by the adjudicating authority includes addition of service tax component as well as subtraction of the same. It was, therefore, not relevant to the findings in the adjudication order that these w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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