All Cargo Global Logistics Ltd. v. Commr. of CGST, Cus. & CE

FINANCE ACT, 1994

--Goods transportation agency services--Consignment note not issued by the transporter Assessee, whether liable to pay service tax under reverse change mechanism----Since transporters had not issued the consignment note to assessee, therefore, it was not liable to pay service tax under the reverse charge mechanism and also did not fall under the category of GTA as under section 65 (5b) of the Finance Act, 1994.--Assessee was receiving input services from various truck owners and their payments were made, which were treated as expense in the books of account of assessee. Revenue alleged that assessee had paid the amount towards provisions of the service and as such was liable to pay service tax under section 65(105)(zzp). Held: From perusal of definition of GTA (Goods transports agency services), it is apparent that the issue of consignment note, by whatever name, is pre-requisite for the transaction to be covered under 'Goods Transport Agency'. In the instant case, service provider had not issued the consignment note to assessee and therefore, assessee was not liable to pay service tax under the reverse charge mechanism and also did not fall under the category of GTA as under section 65(5b) of the Finance Act, 1994.