TMI Blog2019 (10) TMI 1416X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices, if any rendered by the farmer is only a self service. Therefore, there are no service provider service recipient relationship between the farmer and the appellant factory. The goods are not necessarily carried in a motor vehicle which falls within the definition of goods carriage and no service is rendered by the farmer to the appellant and hence there is no service provider service recipient relationship. Also, it is found that the issue of consignment note which is an essential ingredient for goods transport agency services to be called so, is also missing in the present case - no service tax can be levied upon the appellant on the amount of transport subsidy which they paid to the farmers who bring their sugarcane for delivery to the factory. Since no service tax is chargeable, the entire demand in the impugned order along with interest and consequential penalties need to be set aside. On an identical issue in the case of M/S. NANDGANJ SIHORI SUGAR CO. VERSUS CCE. LUCKNOW [ 2014 (5) TMI 138 - CESTAT NEW DELHI] , it has been held that no service tax is payable under reverse charge mechanism under the Goods Transport Agency services for the amounts paid for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ordered its recovery along with interest, under section 75 of the Finance Act, 1994. He further imposed penalties under sections 76, 77 78 of the Finance Act, 1994. 4. Aggrieved, the appellant appealed before the first appellate authority who, by the impugned order, upheld the order of the lower authority and dismissed the appeal. Hence, this appeal. 5. Ld. Counsel for the appellant would submit that the individual farmers transport their sugarcane in their own tractor trolleys or bullock carts for sale to the appellant and such transport does not come under the category of Goods Transport Agency Service . The sale takes place only when the goods are delivered to the appellant at the factory and therefore the appellant cannot be made liable to any activity with respect to the goods prior to the delivery. The means of transport are owned by the farmers themselves i.e. their own tractors, bullock carts etc. Therefore, it is a case of the farmer transporting his own goods in his own vehicle on his own account in order to deliver and sell them to the appellant. By no stretch of imagination, can this be called a service being rendered by farmer to the appellant. The mere fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y service to the appellant because he is transporting his own goods. Until the goods are delivered to the factory, the services, if any rendered by the farmer is only a self service. Therefore, we do not find any service provider service recipient relationship between the farmer and the appellant factory. 11. We also find that the goods transport agency services is defined in Section 65(105)(zzp) which reads as follows: TAXABLE SERVICE With effect from 16.05.2008. Taxable Service means any service provided or to be provided to any person, by a goods transport agency, in relation to transport of goods by road in a goods carriage Section 65(105)(zzp). 16.06.2005 to 15.05.2008 Taxable service means any service provided or to be provided to a customer, by a goods transport agency, in relation to transport of goods by road in a goods carriage Section 65(105)(zzp). 01.01.2005 to 15.06.2005 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 Section 65(105)(zzp) . The term Goods Carriage used in the aforesaid definition is defined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to transport of goods by road and issues a consignment note . There is nothing on record to show that the farmer has issued a consignment note. The demand is made by Revenue on the payment made for transportation made by the appellant the alleged service recipient. In fact, there is no case for the farmer to issue a consignment note because he is carrying his own sugarcane and not rendering service to another person. We, therefore, find that the essential element of issue of consignment note is also missing in this case. 13. In view of the above, we find that the goods are not necessarily carried in a motor vehicle which falls within the definition of goods carriage and no service is rendered by the farmer to the appellant and hence there is no service provider service recipient relationship. We also find that the issue of consignment note which is an essential ingredient for goods transport agency services to be called so, is also missing in the present case. 14. In view of the above, we find that no service tax can be levied upon the appellant on the amount of transport subsidy which they paid to the farmers who bring their sugarcane for delivery to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 a consignment note issued by Goods Transport Agency represent its liability to transport the consignment handed over to it to the destination and deliver the same to the consignee and merely a bill issued for transportation of goods cannot be treated as Consignment Note. The fact of non-issue of consignment to M/s. Nandganj is admitted in the show cause notice itself. In case of M/s. Bajpur though it is not mentioned in the show cause notice, this plea has been made by the Appellant and the same 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 delive ..... X X X X Extracts X X X X X X X X Extracts X X X X
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