Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Service Tax under Category of GTA cannot be Demanded in Absence of Consignment Note: CESTAT [Read Order]
Excise, VAT & Custom
The New Delhi bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruled that Service Tax as a Goods Transport Agency (GTA) cannot be demanded without a consignment note. \r
Appellants, including M/s. Vaishnav Marbles Private Limited, engaged individual transporters for marble blocks transportation. The demand for service tax was contested, arguing that without a consignment note, their services don't fall under GTA. Pre and post-negative era statutes were considered. CESTAT referenced a similar Ahmedabad Bench decision, exempting such services under Section 66D (p)(i) of the Finance Act, 1994. \r
The two-member bench, Binu Tamta, and Hemambika R Priya, held that without consignment notes, service tax recovery as GTA is invalid. J. Kainat represented the appellant, while Jaya Kumari appeared for the respondent.
