Pranish Carriers LLP Vs Commissioner of Central Goods & Service Tax (CESTAT Allahabad)
The appeal was filed by M/s Pranish Carriers LLP against Order-In-Original No. 18-19-PrCommr-ST-Noida-2020-21 dated 18.08.2020, whereby the Commissioner, CGST, Noida confirmed service tax demands for April 2015 to March 2016 and April 2016 to June 2017. For April 2015 to March 2016, service tax of Rs. 1,77,97,667/- was confirmed under Section 73(2) of the Finance Act, 1994, along with interest under Section 75, penalty of Rs. 1,77,97,667/- under Section 78 and penalty of Rs. 10,000/- under Section 77(1)(a). For April 2016 to June 2017, service tax of Rs. 2,67,22,126/- was confirmed under Section 73(2), along with interest under Section 75, penalty of Rs. 26,72,213/- under Section 76 and penalty of Rs. 10,000/- under Section 77(1)(a).
The dispute concerned the classification of the appellant’s transportation transactions. The Tribunal recorded that the period involved was April 2015 to June 2017 and that, for the earlier period from October 2010 to March 2015, the same Bench had already allowed the appellant’s appeal on the self-same issue in Service Tax Appeal No. 70692 of 2017 by Final Order No. 70183 of 2023 dated 09.11.2023.
In the earlier proceedings, the Tribunal examined transportation transactions supported by consignment notes and found that the nature of payment, whether fixed or variable, did not alter the nature of the transaction. The consignment notes established that the service provided by the appellant was GTA service. The Tribunal also examined an agreement dated 23.07.2010 with INOXAP and found that its terms, including the appellant’s responsibilities concerning vehicles, drivers, maintenance, statutory requirements and transportation, supported classification of the transactions as transportation of goods by road.
