Service Tax Liability Imposed on Goods Transport Agency service Without Verifying Certificates Obtained from Transporters: CESTAT Directs Re-adjudication [Read Order]

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication for the imposition of service tax liability on goods transport agency service without verifying the certificate obtained from transporters. 

Grand Polycoats Co Pvt Limited, the appellant assessee claimed that service tax on the same service was paid by the service provider. 

The assessee appealed against the order passed by the Commissioner for confirming the demand for service tax imposed on goods transport agency services. 

Mrugesh G. Pandya, the counsel for the assessee contended that the Commissioner (Appeals) stated that no documents were submitted by the assessee, and without verifying valid documents the demand was raised. 

Further submitted that as per Chartered Accountant certificates, it was clear that service tax was paid by the transporters, therefore the demand was not sustainable. 

Ajay Kumar Samota, the counsel for the department relied on the decisions made by the lower authorities and contended that the demand raised by the department to the assessee was done as per the law and liable to be sustained. 

The Bench observed that it was necessary to remand the matter to the Adjudicating Authority to decide the matter only after confirmation from the jurisdictional officer of the transporters that the service tax for the service received by the assessee had been paid by the transporters. 

A single-member bench comprising Ramesh Nair (Judicial) directed the adjudicating authority for re-adjudication while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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