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TMI Blog2012 (4) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... .2.2010, issued by the Government of India (P-10), which included transport service concerning "food grains and pulses" in the list of exempted items from the service tax leviable under Section 66 of the Finance Act, 1994 (for brevity, 'the Act'). In other words whether the petitioners would be obliged to pay 'service tax' to respondent Food Corporation of India under the terms of contract or their obligation under the contract would come to an end after 27.2.2010. The facts have been referred from CWP No. 15974 of 2011. 2. The petitioners have prayed for quashing communications dated 11.4.2011 (P-11) and 9.6.2011 (P-13). By those communications it has been decided that the contracts, which were awarded before issuance of notification dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r/Mandi Transportation Contract, which they have entered into as a result of award of contracts to them (P-4). The second pertains to appointment of loading, unloading and handling transportation contract at FCI godowns and rail heads, which does not pertain to the petitioners and meant only for the Handling and Transportation Contractors (HTC). The HTC contractors are also required to carry out transportation within the local area. However, as per the said contract no service tax is deducted from the payments made to Handling and Transport Contractors against the transportation within the local area. The amount of service tax in such cases is paid by the FCI at its own level. The third tender document/contract is for the appointment of Roa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducting the amount of service tax from their transportation bills for the year 2009-10, as per details given in Annexure P-7. The petitioners protested against deduction of service tax from their bills and one such representation dated 30.4.2009 is placed on record (P-8). Thereafter, according to the petitioners the deductions on account of service tax were stopped during the financial year 2010-11. But in the financial year 2011-12 i.e. after extending the period of contract, the respondents again started the deductions. 6. On 3.12.2004, a notification under Section 93(1) of the Finance Act was issued by the Central Government exempting payment of whole of service tax by a goods transport agency, who is providing service to a customer in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned circular dated 11.4.2011, vide impugned communication dated 9.6.2011 (P-13). 7. In the written statement filed on behalf of the respondents the factual position has not been denied. The only assertion made is that till the notification dated 27.2.2010 (P-10) was issued by the Central Government, service tax was used to be deducted from the payments of the petitioners and deposited with the Government. Thereafter, the amount equivalent to the element of the service tax was continued to be deducted as the service tax was part of the rate and, therefore, the Food Corporation of India has to recover that part of the rate from the petitioners as they are not entitled for the said benefit. It has been submitted that the petitioners have no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 66 of the Act. It did not include 'food grains and pulses'. The notification dated 27.2.2010 (P-10) amended the notification of 3.12.2004 (P-9) and added 'food grains and pulses' in the list of exempted items. Therefore, it must be concluded that goods transport service provided by a goods transport agency to a customer in relation to transport of 'food grains and pulses' by road in a goods carriage were exempted from payment of 'service tax' with effect from 27.2.2010 (P-10). Therefore, the stipulation in the tender notice (P-1) requiring the contractors to pay 'service tax' came to an end and there is no subsisting obligation to pay 'service tax' to the Government through respondent FCI. Once the aforesaid position is clear then no dou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... others 8. 183 of 2012 Akash Mahajan v. Food Corporation of India and others 9. 215 of 2012 V.K. Transport Company, Gurdaspur v. Food Corporation of India and others 10. 328 of 2012 M/s Suresh Kumar Mahesh Kumar v. Food Corporation of India and others 11. 354 of 2012 M/s Suresh Kumar Mahesh Kumar v. Food Corporation of India and others 12. 355 of 2012 Punjab Himachal Goods Transport Co. v. Food Corporation of India and others 13. 361 of 2012 Punjab Himachal Goods Transport Co. v. Food Corporation of India and others 14. 642 of 2012 M/s Garcha Goods Transport Union and others v. Food Corporation of India and another 15. 2586 of 2012 M/s R.S. Labour and Transport Contractor and others v. Food Corporation of India and ot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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