|
The Tax Publishers 2019 TaxPub(ST) 0904 (CESTAT-Del) : (2019) 089 ITPJ (V) 0777
Nagpal Traders v. CCE
FINANCE ACT, 1994 --Recovery--GTA ServiceReverse charge mechanism --Non-payment of service tax --Mere payment of freight to a transporter who was otherwise not an agency did not amount to receiving goods transport agency services. Accordingly, assessee could not be made liable under reverse charge mechanism to pay the service tax for receiving the transportation services. --Assessees were providing the services under the category of 'Authorised Service Station'. Department during the audit, noticed that assessees had not paid the service tax on the amount of rate paid by them during the period 2005-06 to 2009-10 and on the rental income received by them during period. Accordingly, a Show Cause Notice was issued proposing the recovery of service tax along with interest and proportionate penalties. Held: Mere payment of freight to a transporter who was otherwise not an agency did not amount to receiving goods transport agency services. Accordingly, assessee could not be made liable under reverse charge mechanism to pay the service tax for receiving the transportation services. Adjudicating Authority wrongly confirmed liability under reverse charge mechanism for receiving the GTA services by assessee.
Finance Act, 1994 Section 73
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE CESTAT, NEW DELHI BENCH
BIJAY KUMAR, (TECHNICAL MEMBER) & RACHNA GUPTA, (JUDICIAL MEMBER)
Nagpal Traders v. CCE
Service Tax Appeal No. 50090 of 2014-DB/DEL
SUBSCRIBE FOR FULL CONTENT |