Chebrolu Agros Pvt Ltd. Vs Commissioner of Central Excise And Service Tax (CESTAT Hyderabad)
The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal examined the levy of Service Tax on threshing of tobacco leaves and on freight charges paid to truck operators for the period from April 2010 to March 2011. The Department had raised demands under the categories of Business Auxiliary Service (BAS) and Goods Transport Agency (GTA) service. During the hearing, no one appeared on behalf of the appellant. The departmental representative submitted that the issue relating to BAS was no longer res integra in view of an earlier Tribunal decision and stated that the Department was not contesting the BAS demand. With regard to GTA service, reliance was placed on an earlier order in the appellant’s own case where the demand had been confirmed.
The Tribunal identified the principal question as whether Service Tax was leviable on threshing charges under BAS. It observed that this issue had already been settled and that, even in the appellant’s own earlier case, the demand under BAS had been set aside. Accordingly, the Tribunal held that Service Tax could not be levied on threshing charges under BAS.
On the GTA issue, the Tribunal noted that although the earlier order had upheld the demand, there was no detailed reasoning in that decision, apart from reliance on another Tribunal judgment rendered on a specific factual matrix. The Tribunal further observed that, in the present appeal, the appellant had cited several Tribunal decisions to contend that services availed from private truck operators could not be subjected to Service Tax under GTA in the absence of a consignment note. It found from the impugned order that these case laws had been cited but were not discussed in detail.
