The High Court of Punjab and Haryana set aside the order passed without allowing the assessee to produce the relevant documents for service tax exemption.
The Assessing Authority has made a demand of Rs.1,87,10,146/-for the period 2016-17 and 2017-18 under Section 70 of the Finance Act, 1994. The issue in the writ petition was whether M/s. Shiva Transport Company, the petitioner who claims to be a Goods Transport Agency and was doing the work for FCI, a Food Procurement Agency in agricultural produce and is exempted from Service Tax under Rule 4(b) of the Service Tax Rules, 1994.
Further to clarify whether exempted from Service Tax under Entry No.21 of Notification No.25/2012-ST dated 20.06.2012 must pay the above-said amount only on the ground that apart from producing Form 26A, Bank Statement and copy of the contract and the tender allotted to them, he did not produce the consignment note.
As per Rule 4B, the goods transport agency, about the transport of goods by road in a goods carriage, shall issue a consignment note to the recipient of service except when the taxable service about the transport of goods by road in a carriage is fully exempt under section 93 of the Act.
It was stated that if the Assessing Authority would have given him one opportunity, he would have produced the consignment note before the Assessing Authority as well to complete the entire evidence.
It was evident that under Entry No.21 of the Exemption Notification, any Transport Agency that is doing the work of transportation of food grains is exempted from Service Tax. The respondents argued that a consignment note should have been produced by the petitioner.
A Coram comprising of Justice Ritu Bahri and Justice Amarjot Bhatti set aside the order dated 30.12.2022 since the impugned order has passed without any giving opportunity to the petitioner to produce the relevant documents which were in his custody.
While allowing the petition, the court remanded the matter back to the Assessing Officer to pass a fresh order after giving one opportunity to the petitioner to produce the consignment note(s) and then pass a speaking order keeping in view the Entry No.21 of the Exemption Notification, following the law.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
