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Demand under GTA Services can’t made in the absence of Consignment Notes: CESTAT [Read Order]

Service Tax - GST - GTA - Taxscan

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Rohan Motors Ltd v. CCE, Meerut, held that the department cannot classify a service as Goods Transport Agency ( GTA ) and demand tax from such service in the absence of Consignment notes.

The appellant is a dealer of M/s. Maruti Udyog Ltd in respect of the cars manufactured by MUL, has organized for transportation of vehicles from their dealership to the premises of the customer by engaging other vehicles. In such cases they have paid the freight but he submitted that their activity is not in the nature of a goods transport agency and they have not issued any consignment notes.

The Revenue demanded tax from the appellant by treating the activity as GTA Service.

It was submitted on behalf of the appellant that they were organized for transportation of vehicles from their dealership to the premises of the customer by engaging other vehicles. In such cases they have paid the freight but he submitted that their activity is not in the nature of a goods transport agency and they have not issued any consignment notes.

The Tribunal allowed the above contention and noted that the appellant has paid the freight expenses in connection with transportation of Cars to their customers. “However, they have not issued any consignment notes which are necessary to identify the appellant as a goods transport agency. As per the views expressed by the Tribunal in the case of South Eastern Coal Fields Ltd. (supra), in the absence of consignment notes, the activity of the appellant cannot be classified under GTA service. Consequently, we set aside the demand under GTA service,” the bench said.

To Read the full text of the Order CLICK HERE
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