TMI Blog2024 (1) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... at any transport company which is not issuing Consignment Note is presumed to be GTO. However, it is found that the later decisions by the Division Benches of the Tribunal have categorically laid down the law that in absence of consignment note services cannot be considered as GTA services and the demand of service tax under the category of Goods Transport Agency does not sustain. The goods were transported locally from the mines to the factory site and since the distance to be covered is short, no consignment note has been issued by the service provider and therefore the levy of service tax under the category of Goods Transport Agency is not sustainable in view of the various decisions of the Division Benches of the Tribunal which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of Rule 2(1)(d)(v) of the Service Tax Rules, 1994, however, the assessee while determining the tax liability escaped the amount paid to the various transport agencies exceeding Rs.750/- but less than Rs.1,500/- treating it as exempted by wrongly availing the benefit of Notification No. 34/2004 ST dated 3.12.2004 (as amended). According to the Department, since in this case the gross amount charged for an individual consignment exceeds Rs.750/-, it is chargeable to service tax whereas as per the exemption notification, the gross amount charged on an individual consignment transported in a goods carriage should not exceed Rs.750/- for availing the exemption benefit. Show cause notice dated 09.04.2013 was issued to the assessee to why ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Coromandel Agro Products Oils Vs. CCE Guntur 2014 (33) STR 660 and also distinguished the decisions cited by the learned counsel for the appellant on the ground that the same related to the transport service within the mines. He also reiterated that the case of the appellant is covered by clause (ii) of the notification which specifically says the gross amount charged should not exceed Rs.750/-, whereas the case of the appellant is covered by clause (ii) which is related to individual consignment therefore the benefit of the exemption notification cannot be granted. 4. Having heard both the sides and perused the records of the case, I find that the main thrust of the argument of the learned counsel for the appellant is that no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rib.) and CCE Vs. Salem Co-operative Sugar Mills ltd. 2014 (35) STR 450 (Tribunal). 6. I would like to refer the paragraphs from the latest decision in Mahanadi Coalfields Ltd. (Supra) : 9 . In the instant case, the issue before us is whether the appellant, who is a recipient of goods transportation services in the mines, is liable to pay service tax under RCM. We find that the service tax liability will arise only if the definition of taxable service as contained in Section 65(105)(zzb) of the Act, which was in force during the material period, is fulfilled. As per the said provision, during the period in dispute, the taxable service, in relation to transport of goods in a goods carriage, means any service provided or to be pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Tribunal in Birla Ready Mix v. C.C.E., Noida - 2013 (30) S.T.R. 99 (Tri. - Del.) and in Final Order Nos. ST/A/50679- 50681/2014-CU(DB), dated 13-1-2014 [2014 (34) S.T.R. 850 (Tribunal) and in Nandganj Sihori Sugar Co. Ltd. and others v. C.C.E., Lucknow unambiguously enunciated the principle that qua the definition of Goods Transport Agency enacted in Section 65(50b) of the Act, to fall within the ambit of the defined expression issuance of a consignment note is non-derogable ingredient. 7. In view of the law declared and the factual matrix of this appeal since where admittedly no consignment notes were issued by the 24 transporters for transportation of the appellant s coal, the Goods Transport Agency service cannot be held to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s decision has no application in the instant case. 7. From the facts of the present case I find that the goods were transported locally from the mines to the factory site and since the distance to be covered is short, no consignment note has been issued by the service provider and therefore the levy of service tax under the category of Goods Transport Agency is not sustainable in view of the various decisions of the Division Benches of the Tribunal which is binding on me. Therefore, the distinction sought to be placed by the Revenue that the earlier decisions related to mines is not sustainable. 8. The appellant has taken alternative argument that freight charges related to transportation of goods in a goods carriage and that the fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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