The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax payable on transportation of petroleum products without consignment notes by road.
The bench of Vasa Seshagiri Rao (Technical Member) and Ajayan T.V. (Judicial Member) has observed that the contract was for transportation of petroleum products on which service tax under GTA has been discharged by M/s. HPCL themselves. The nature and type of agreement between the two parties also service to indicate that there is no Supply of Tangible Goods involved in this matter.
The appellants/assessee are a lorry owners association providing various services such as “renting of immovable property services” and “supply of tangible goods services”.
Upon perusing their Balance Sheet for the years 2008-09 to 2012-13, the Department was of the opinion that the appellants have shown amounts as income received under various heads therein, and such income appears to have been on account of various services rendered by them upon which they have not discharged their service tax liability.
Therefore, the Department had issued a show cause notice proposing demand of service tax on their liabilities for the years 2008-09 to 2012-13, in respect of membership fees/subscription under club or association service, Tanker/lorry rent received under supply of tangible goods service and lorry stand parking rent/building rent under renting of immovable property service, with interest thereon and proposing imposition of penalties under various provisions of law.
The adjudication of the SCN resulted in confirmation of demands which was carried in appeal to the appellate authority and during the pendency of the appeal before the appellate authority, the impugned Statement of Demand (SOD) for the period April 2013 to March 2014 came to be issued demanding service tax on supply of tangible goods services and renting of immovable property services.
After due process of law, the adjudicating authority confirmed the demands proposed in the SOD.
The assessee contended that the appeal has been preferred disputing the taxability of the receipt of transportation charges from M/s. Hindustan Petroleum Corporation Ltd (HPCL) that is being sought to be taxed under Supply of Tangible Goods Service. The appellant entered into an agreement for transportation of petroleum goods by road for freight paid per kilometre per kilo litre basis. This service falls under the category of GTA service and the consignor, viz., HPCL pays service tax on reverse charge basis.
The tribunal allowed the appeals and quashed the order.
Case Details
Case Title: M/s. Erode Lorry Owners Association Versus Commissioner of CGST & CE
Case No.: Service Tax Appeal No. 41678 of 2015
Date: 12.02.2025
Counsel For Appellant: J. Shankararaman
Counsel For Respondent: N. Satyanaryanan
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