Service Tax : In case of goods transport agency's services, exemption limit of Rs. 1,500 relates to 'all consignments' relating to 'all consignees' while exemption limit of Rs. 750 relates to 'single consignee'; hence, where goods are transported for a single consignee, exemption limit of Rs. 750 is applicable and if freight exceeds Rs. 750, it is liable to service tax, even if it is upto Rs. 1,500
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[2014] 52 taxmann.com 339 (Madras)
HIGH COURT OF MADRAS
Commissioner of Central Excise, Salem
v.
Suibramania Siva Co-op. Sugar Mills Ltd.*
CHITRA VENKATARAMAN AND T.S. SIVAGNANAM, JJ.
CIVIL MISC. APPEAL NO. 3079 OF 2011
M.P. NO. 1 OF 2011†
OCTOBER 4, 2013
Section 65(50b), read with sections 65B(26) and 66D(p), of the Finance Act, 1994, read with rule 2(1)(d)(v) of the Service Tax Rules, 1994 - Taxable Services - Goods Transport Agency's Services - Period from 1-1-2005 to 31-3-2007 - Assessee argued that since services were received from individual truck operators, said operators could not be regarded as Goods Transport Agency - HELD : Section 65(50b) defines 'Goods Transport Agency' as 'any person' who provides service in relation to transport of goods by road and issuing consignment note, by whatever name called - 'Any person' includes every person engaged in an activity providing service of transport of goods by road - Thus, any commercial or a proprietary concern carrying on business of Goods Transport would fall under definition of 'Goods Transport Agency' - In absence of any words of restriction, definition 'any person' thus would have application to any concern providing service - Hence, individual truck operators are also covered and Budget Speech cannot be relied on to hold otherwise [Paras 16 to 20] [In favour of revenue]
■■■
[2014] 52 taxmann.com 339 (Madras)
HIGH COURT OF MADRAS
Commissioner of Central Excise, Salem
v.
Suibramania Siva Co-op. Sugar Mills Ltd.*
CHITRA VENKATARAMAN AND T.S. SIVAGNANAM, JJ.
CIVIL MISC. APPEAL NO. 3079 OF 2011
M.P. NO. 1 OF 2011†
OCTOBER 4, 2013
Section 65(50b), read with sections 65B(26) and 66D(p), of the Finance Act, 1994, read with rule 2(1)(d)(v) of the Service Tax Rules, 1994 - Taxable Services - Goods Transport Agency's Services - Period from 1-1-2005 to 31-3-2007 - Assessee argued that since services were received from individual truck operators, said operators could not be regarded as Goods Transport Agency - HELD : Section 65(50b) defines 'Goods Transport Agency' as 'any person' who provides service in relation to transport of goods by road and issuing consignment note, by whatever name called - 'Any person' includes every person engaged in an activity providing service of transport of goods by road - Thus, any commercial or a proprietary concern carrying on business of Goods Transport would fall under definition of 'Goods Transport Agency' - In absence of any words of restriction, definition 'any person' thus would have application to any concern providing service - Hence, individual truck operators are also covered and Budget Speech cannot be relied on to hold otherwise [Paras 16 to 20] [In favour of revenue]
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