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7. Learned authorized representative for the Revenue reiterates the impugned order.

6 ST/52076 OF 2014

8. We have considered the submissions on both sides and perused the records.

9. The short question to be decided is if the appellant is liable to pay service tax under the head Goods Transport Agency Service on the 2% amount, which it had collected towards transportation from M/s NTPC. It is evident from the records that the appellant's contracts were for supply of the goods, and for provision for Erection, Commissioning and Installation and Management Maintenance and Repair Services. In order to erect and install the equipment, they need to be transported to the site by the appellant. As per the agreement, the appellant could charge 2% of the sale value of the equipment for this transportation. It did not matter what was the actual cost of transportation incurred by the appellant. If it was more, the appellant would have to suffer the loss and if it was less, the appellant could gain. According to the Revenue, this collection of 2% towards transportation amounts to providing Goods Transport Agency Service. According to the appellant, it was not providing any Goods Transport Agency Service and in fact it had not issued any consignment note, as required under section 65 (50b) according to which Goods Transport Agency means "any person who provides service in relation to transportation of goods by road and issues consignment note, by whatever name called". Nothing in the records before us show that the appellant was providing Goods Transport Agency Service to M/s NTPC. The 7 ST/52076 OF 2014 person liable to pay service tax in case of Goods Transport Agency Service is the one who is liable to pay the freight for the transportation of such goods. In other words, it is the NTPC which would have been liable to pay service tax and not the appellant. It also needs to be pointed out that the appellant had hired the services of Goods Transport Agencies for transporting the goods and as the service recipient, it had discharged service tax on the amounts which it paid towards goods transportation.