TMI Blog2017 (3) TMI 1786X X X X Extracts X X X X X X X X Extracts X X X X ..... ate established by or under any law; (or other category or persons detailed in Clause (v) of Rule 2(d), which we do not find applicable in the case in hand), would be liable to pay service tax. In the present case, transporters transferring sugarcane from Cane Collection Centers to sugar mills and presenting bills for such service, squarely satisfy the requirement of Rule 2(d)(v) read with Section 65(50b) of Finance Act, 1994 - the transporters in the present case are clearly covered by the definition of Goods Transport Agency hence Assessees are liable to pay service tax being within the definition of person liable to pay service tax under Rule 2(d)(v). Mere fact that it is difficult to ascertain how much freight was paid for con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, District Aligarh (hereinafter referred to as the Assessee 1 and Assessee 2 respectively and jointly as Assessees ) are engaged in manufacture of cane sugar and molasses. They are procuring sugar cane from farmers who deliver same at Cane Collection Centers set up by Assessees. From Cane Collection Centers , sugarcane is transferred to sugar mills by individual truck owners who charge for transportation of sugarcane by presenting bills, fortnightly. The authorities of Central Excise took a view that Assessees being recipient of transportation service, are required to discharge service tax liability hence initiated proceedings. Authorities took the view that Assessees are Cooperative Societies and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 2(1)(d) of Service Tax Rules, 1994 ( hereinafter referred to as the Rules, 1994 ), we find, has been considered by this Court in M/s Oudh Sugar Mills Ltd. through Sri Shoorveer Singh Vs. Customs, Excise and Service Tax Appellate Tribunal and others (Central Excise Appeal No. 11 of 2013), decided on 02.02.2017 by this very Bench. After discussing relevant provisions, this Court has held that Assessee, M/s Oudh Sugar Mills satisfy the conditions so as to qualify the term person liable for paying service tax and answered said issue against Assessee and in favour of Revenue. In our view, the aforesaid judgment squarely apply to the facts of this case also but for our satisfaction we proceed to examine relevant provisions as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in relation to insurance auxiliary service by an insurance agent, any person carrying on the general insurance business or the life insurance business, as the case may be, in India; ( iv) in relation to any taxable service provided or to be provided by any person from a country other than India and received by any person in India under section 66A of the Act, the recipient of such service; ( 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 formed or registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax (Third Amendment) Rules, 2006 w.e.f. 01.05.2006 and initially it reads as under: ( vii) in relation to sponsorship service provided to any body corporate or firm, the body corporate or firm, as the case may be, who receives such sponsorship service. 11. This Clause (vii) then was substituted by Service Tax (Amendment) Rules, 2007 w.e.f. 01.04.2007 which we have quoted above. 12. Therefore, a Goods Transport Agency, i.e., a person who provided service in relation to transport of goods by road and issues consignment note (by whatever name called) when render such service to any cooperative society established by or under any law; or company formed or registered under the Compani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ignored the fact that under Section 65(50b) it has been further clarified that a consignment note or anything having similar nature but called by whatever name, would be within the ambit of Section 65(50b) of Finance Act, 1994. The term consignment note has no magical or technical meaning looking to the very purpose and intent of legislature in the matter. Mere fact that it is difficult to ascertain how much freight was paid for consignment by Assessee would also not be of any help in the case in hand since that is not a reason for an otherwise applicability of aforesaid provisions to the facts of the case in hand. 15. We, therefore, answer aforesaid question in favour of Assessee and set aside the judgment of Tribunal t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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