Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-22-09-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 22 September 2023
Parties: Aims Industries Ltd vs. C.C.E. & S.T.-Vadodara
Facts –
- The Appellant, Aims Industries Ltd, is engaged in the production and clearance of industrial gases. They availed GTA (Goods Transport Agency) services and paid Service Tax under Reverse Charge Mechanism. They also availed services from private tractor owners for local transportation of goods.
- It was alleged that since the appellant have availed the GTA service, they are liable to pay Service Tax under reverse charge mechanism on the freight paid by them to the tractor trolley owners who provided their transportation to the appellant.
Issue –
- Whether the appellant is liable to pay Service Tax on GTA service?
Order –
- The Tribunal observed that even though the transportation activity is involved but the criteria for classifying a transport service under GTA are not fulfilled. Such as no consignment note/LR was issued and the transportation was provided by not the goods transport agency but individual tractor trolley owners. Therefore, the service does not fall under the definition of GTA service. Accordingly, the same is not taxable in the hands of the appellant.
- The issue has been considered in various judgments and it was categorically held that in case transportation made by vehicle operator (in the present case tractor trolley owners) and no consignment note was issued, the service cannot be held as goods transport agency service liable to Service Tax. Therefore, the impugned order is not sustainable.
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