2019 (1) TMI 1230 – CESTAT CHENNAI – TMI – Refund the service tax paid under GTA service – after paying the service tax, later, they were of the opinion that no service tax has to be paid on the freight incurred by M/s. Shiva Cargo Movers Ltd. as the transporter does not qualify as Goods Transport Agency – refund claim was rejected holding that the tax paid is in order and that there is no ground for granting refund – Held that:- The transporter who is entrusted with the duty of transporting the goods of another and who has to issue consignment note or such other documents evidencing the transportation of the goods will fall under the category of GTA as provided under section 65(50b) of the Finance Act, 1994 – In the instant case, M/s. Shiva Cargo Movers Ltd. provides services of transporting of the goods by the appellant in their vehicles by road and also issues documents for evidencing such transport. M/s. Shiva Cargo Movers Ltd. are not owners of the goods.
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In Commissioner of
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ct of the freight paid to M/s. Shiva Cargo Movers Ltd. who has transported their finished goods. They later were of the opinion that no service tax has to be paid on the freight incurred by M/s. Shiva Cargo Movers Ltd. as the transporter does not qualify as Goods Transport Agency. Hence they filed refund claim to refund the service tax paid under GTA service. The refund claim was rejected holding that the tax paid is in order and that there is no ground for granting refund. The matter reached the Tribunal and vide Final Order No.350/2012 dated 9.4.2012, the matter was remanded to the original authority for verification as to which of the consignments in respect of service tax has been paid twice and whether the incidence of the excess tax has not been passed on to other persons. The adjudicating authority after verification of the claim concluded that it is not a case of excess payment or double payment of service tax and that the service provider M/s. Shiva Cargo Movers Ltd. have not
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e under mistake and therefore the appellant is eligible for refund. He relied upon the following case laws:- a. Shreenath Mhaskkoba Sakhar Karkhana Ltd. – 2017 (3) GSTL 169 (Tri. Mum.) b. Jaikumar Fulchand Ajmera – 2017 (48) STR 52 (Tri. Mum.) 3. The ld. AR Shri B. Balamurugan supported the findings in the impugned order. He adverted to para 5.6 of the order in original and submitted that on perusal of invoices raised by the transporter M/s. Shiva Cargo Movers Ltd., it is not clear whether the vehicle was used for transport of the goods of their own or on hire basis. So also in respect of various invoices, there is a specific clause that the service tax bill be borne by the consignor / consignee. The appellant is one among the seven categories specified in Notification No.36/2004-ST dated 31.12.2004 and therefore is liable to discharge the service tax under GTA service. In the case of GTA, the liability to discharge service tax has been transferred to the service receiver and therefore
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The argument of the ld. consultant that the lorries / vehicles are owned by M/s. Shiva Cargo Movers Ltd. and being truck owners they do not fall under GTA is without any substance. By Notification No.36/2004-ST dated 31.12.2004, the responsibility of discharging the service tax has been made upon the service recipient to lift the burden from individual truck owners who undertake transport of goods. The transporter who is entrusted with the duty of transporting the goods of another and who has to issue consignment note or such other documents evidencing the transportation of the goods will fall under the category of GTA as provided under section 65(50b) of the Finance Act, 1994. In the instant case, M/s. Shiva Cargo Movers Ltd. provides services of transporting of the goods by the appellant in their vehicles by road and also issues documents for evidencing such transport. M/s. Shiva Cargo Movers Ltd. are not owners of the goods. In Commissioner of Central Excise, Guntur Vs. Chebrolu Ag
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