TMI Blog2008 (9) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... Member (Judicial) and Shri T.K. Jayaraman, Member (Technical) (Final Order No. 1113/2008 dt. 25.9.2008 certified on 14.10.2008 in Appeal No. ST/118/2008) Shri M.S. Nagaraj, Adv. for Appellant. Ms. Joy Kumari Chander, JCDR for Respondent. [Order per : T.K. Jayaraman, Member (Technical)] - This appeal is filed against the Order-in-Appeal No. 207/2007-CE dated 13.12.2007 passed by the Commissioner of Central Excise (Appeals), Mangalore. 2. Mr. M.S. Nagaraj, the learned Advocate appeared on behalf of the appellants and Ms. Joy Kumari Chander, the learned JCDR, for the Revenue. 3. We heard both sides. 4. The appellants are actually manufacturers of Oxygen and Nitrogen. They transport the cylinders to their buyers in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... customer by a goods transport agent in relation to transportation of goods by road. The measure of the tax is a freight charges paid, but the measure of tax cannot alter the incidence or scope and nature of levy of service tax. The appellants being manufacturer consignor of goods and owner of vehicles cannot provide to themselves as customer the service in relation to transportation of goods. The appellants being the owners of the motor vehicles or goods carriage cannot be said to be their own agents providing the services of GTA to themselves as customers in relation to transportation of goods by road in goods carriage. b) The CBEC vide Circular No. 95/6/2007-ST dated 11.06.2007 has clarified in para 1, the nature and scope of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... life insurance services to the extent of the risk premium. I may clarify that there is no intention to levy service tax on truck owners or truck operators. Nor, as was clarified by my predecessor, is there any intention to levy service tax on the savings part of the premium collected by an insurer." 6.1 From the above, it is very clear that the legislative intent is to tax only the services provided by a Goods Transport Agent to a customer and not the owner. Further, the learned Advocate referred to our attention Rule 2 (1) (d) (v) of the Service Tax Rules, 1994 wherein the person liable to pay service tax is defined. Person liable to pay service tax means the person who pays or is liable to pay the freight. Rule 2 (1) (d) (v) is reprod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons or not. The use of the word 'or' between the terms "consignor" and "consignee" shows that if either the consignor or consignee falls under the category specified therein, then any person who pays or is liable to pay freight is the person liable to pay Service Tax. Therefore, it was argued there was no need for the Commissioner (Appeals) to remand the matter when the law is clear that the liability is on the person who pays the freight. 8. The learned JCDR reiterated the contentions in the impugned order. 9. On a very careful consideration of the entire issue, we find that the appellants transport the goods in their own vehicle to the buyer. The buyer is a person who actually pays the freight. It is very clear in terms of Rule 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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