Transportation Services from Individual Truck Owners Without Consignment Notes Not Covered Under GTA Services, Not attracts Service Tax: CESTAT [Read Order]
CESTAT held that transport services from individual truck owners without consignment notes do not qualify as GTA services and are not liable to service tax under reverse charge.
![Transportation Services from Individual Truck Owners Without Consignment Notes Not Covered Under GTA Services, Not attracts Service Tax: CESTAT [Read Order]](https://images.taxscan.in/h-upload/2025/09/20/2089184-transportation-services-individual-truck-owners-consignment-notes-gta-services-service-tax-cestat-taxscan.webp "Transportation Services from Individual Truck Owners Without Consignment Notes Not Covered Under GTA Services, Not attracts Service Tax: CESTAT [Read Order]")
The Kolkata Bench of the Customs, Excise, andService Tax Appellate Tribunal (CESTAT) ruled that transportation services availed from individual truck owners without issuance of consignment notes are outside the scope of Goods Transport Agency (GTA) services and do not attract service tax under the reverse charge mechanism.
Pioneer Paper & Stationary Pvt. Ltd., the appellant, is a manufacturer of excisable goods. For transporting goods between 2012-13 and 2016-17, the appellant engaged private truck owners who did not issue any consignment notes.
The department issued a show cause notice dated 12 October 2017 demanding service tax under reverse charge and imposed an equal penalty, invoking the extended period of limitation. The adjudicating authority confirmed the demand, and the Commissioner (Appeals) upheld the order.
The appellant’s counsel argued that services from individual truck owners without consignment notes cannot be treated as GTA services. Since a consignment note is an essential requirement for classifying a service under GTA, no service tax was payable.
They also argued that the department had conducted an audit in 2013, and hence, the allegation of suppression was incorrect, making invocation of the extended limitation invalid.
The revenue’s counsel supported the Commissioner’s order and maintained that service tax was payable under reverse charge.
The single-member bench of Ashok Jindal (Judicial Member) observed that it was a matter of record that no consignment notes were issued by the truck owners. The tribunal explained that the definition of GTA service necessarily requires issuance of consignment notes, and in their absence, the services fall outside the ambit of GTA.
The tribunal further pointed out that as the demand itself was unsustainable, the penalty and extended limitation also could not survive. The tribunal set aside the demand and penalty, and the appeal was allowed with consequential relief.
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