Page 107 - GSTL_11th June 2020_Vol 37_Part 2

2020 ] GUNESH LOGISTICS v. COMMISSIONER OF C. EX. & SERVICE TAX, JAIPUR-I 193
2020 (37) G.S.T.L. 193 (Tri. - Del.)

IN THE CESTAT, PRINCIPAL BENCH, NEW DELHI
[COURT NO. I]
Justice Dilip Gupta, President and Shri Bijay Kumar, Member (T)
GUNESH LOGISTICS
Versus
COMMISSIONER OF C. EX. & SERVICE TAX, JAIPUR-I
Final Order No. ST/A/51428/2019-CU(DB), dated 9-9-2019 in Appeal
No. ST/51200/2016
Goods Transportation Agency Service - Activity of transportation of
Ready Mix Concrete (RMC) by using transit mixers of appellant by road -
Consignment note issued by appellant (GTA) containing all particulars as
mentioned in Rule 4B of Service Tax Rules, 1994 - Such activity performed by
GTA-appellant for another viz. mine owners and performed for a considera-
tion - Consequently, appellant rendering GTA service by transporting RMC
from one place to another as per the directions of the service recipient - Sec-
tions 65(50b) and 65(105)(zzp) of Finance Act, 1994. [paras 24, 27, 28]
Appeal allowed
CASE CITED
Commissioner v. Dilip Kumar & Company — 2018 (361) E.L.T. 577 (S.C.) — Referred ............... [Para 10]
DEPARTMENTAL CLARIFICATION CITED
C.B.E. & C. Circular, dated 29-2-2008 .................................................................................................... [Para 10]
REPRESENTED BY : Shri B.L. Narsimhan and Ms. Poorvi Asati,
Advocates, for the Appellant.
Shri Vivek Pandey, Authorized Representative, for
the Respondent.
[Order per : Justice Dilip Gupta, President]. - The order dated 15 Janu-
ary, 2016, by which the Commissioner, Central Excise [the Commissioner] con-
firmed the demand of Service Tax with interest and also imposed penalty, has
been assailed in this appeal.
2. The appellant claims that it is engaged in transportation of Ready
Mix Concrete [RMC] in vehicles in terms of the contracts executed by Grasim
Industries Ltd. and Ultratech Cement Ltd. in its favour. The agreements require
the appellant to transport RMC from the premises of its customer to the desig-
nated places in vehicles having a rotating drum [Transit mixer] (popularly
known as transit mixer) so that the concrete does not set in. The appellant claims
that the consignment notes for each trip of transportation are issued by the ap-
pellant and periodical Bills are raised for transportation charges. As per the Work
Orders, the transportation charges are payable partly based on the quantity of
RMC transported and partly on the basis of distance travelled. The recipient of
the service has been discharging Service Tax liability on a reverse charge basis as
the service which the appellant claims to have been providing is “goods
transport agency [GTA]”.
3. The Department, however, entertained a view that the appellant was
engaged in providing “supply of tangible goods” [STG] service which was taxa-
GST LAW TIMES  11th June 2020  107