Doddanavar Brothers Vs Commissioner of Central Excise and Service Tax (CESTAT Bangalore)
Service Tax Demand Set Aside Due to Absence of Consignment Note Requirement; Transportation by Hired Trucks Not Taxable as GTA Service Without Agency Role; Demand Quashed as Transport Activity Did Not Qualify as Goods Transport Agency Service; Service Tax Not Applicable Where No GTA Service Established in Transport of Goods
In this case before the Customs Excise and Service Tax Appellate Tribunal Bangalore, the appellant challenged a demand of service tax imposed on transportation charges incurred for export of iron ore fines during the period 2007–08. The department had alleged that the appellant failed to include transportation costs amounting to ₹1,88,28,661 in taxable value under the category of Goods Transport Agency (GTA) service and consequently demanded service tax along with interest and penalty.
The appellant contended that no GTA service was involved, as the transportation was carried out through individual truck operators without issuance of any consignment note. It argued that hiring lorries for transportation does not constitute GTA service in the absence of an agency issuing a consignment note. The appellant relied on prior Tribunal decisions to support the position that individual truck operators are not covered under GTA service. It also argued that the demand was time-barred since the transactions were reflected in records audited in 2009, whereas the show cause notice was issued in 2013, without any allegation of suppression or misdeclaration.
