2026-VIL-1543-CESTAT-ALH-ST
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SERVICE TAX CESTAT Cases

Service Tax - Taxability of services as Goods Transport Agency Services - Whether services are classifiable as GTA Services where service provider issued bills instead of consignment notes - Appellant provided clearing and forwarding agent services and GTA services and charged Service Tax from service receivers for clearing and forwarding agent services and deposited to revenue. For GTA services, appellant was under bona fide belief that services come under reverse charge and therefore neither charged Service Tax nor deposited to revenue. On basis of third-party data from Income Tax Department showing difference between receipts and ST-3 values, department issued Show Cause Notices proposing demand of Service Tax. Department denied classification as GTA services on ground that appellant had issued bills instead of consignment notes. Appellant contended that bills issued contained essential particulars of consignment note and acknowledged transportation of goods. Service recipients issued certificates categorically certifying they received GTA services from appellant and discharged applicable Service Tax under Reverse Charge Mechanism - HELD - Section 65(50b) of Finance Act 1994 defines Goods Transport Agency as any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called. The statute does not prescribe any particular format or nomenclature for a consignment note. The expression by whatever name called makes it abundantly clear that the document issued by service provider need not necessarily be titled as consignment note. What is material is the substance and contents of the document evidencing the transportation of goods. Bills issued by appellant contain essential particulars of consignment note and acknowledge transportation of goods. Service recipients issued certificates categorically certifying they received GTA services from appellant and discharged applicable Service Tax under Reverse Charge Mechanism. These certificates constitute cogent and reliable evidence establishing that appellant provided GTA services during relevant period. Certificate given for GTA on letterhead is sufficient and certificate on each consignment note is not required. The denial of benefit merely on ground that appellant issued bills instead of documents titled as consignment notes is unsustainable - Appeals are allowed and demands are set aside - Limitation for demand - Applicability of extended period of limitation based on Form-26AS data from Income Tax Department - Appellant regularly filed ST-3 returns on time and was under bona fide belief that GTA services come under reverse charge. Department issued first Show Cause Notice dated 24.10.2019 for period April 2014 to March 2015 based on third-party data received from Income Tax Department through data sharing protocol showing difference between receipts as per Form-26AS and values shown in ST-3 returns. Subsequently department issued another Show Cause Notice dated 06.07.2021 for period April 2015 to June 2017 invoking extended period of limitation alleging suppression of facts. Appellant contended that Form-26AS is not a statutory document for determining taxable turnover for service tax and that subsequent SCN invoking extended period is not sustainable as all facts were already in knowledge of department when first SCN was issued - HELD - Form-26AS maintained by Income Tax Department is not a statutory document for determining taxable turnover for service tax purposes. The entire basis of Form-26AS and service tax payment are different. The impugned order confirming service tax demand on basis of payment released by service recipients is bad in law and not sustainable. Appellant was regularly filing ST-3 returns and SCNs were issued consecutively for years 2015-16, 2016-17 and 2017-18. All necessary information was available to department based on which first SCN was issued. Subsequent SCN invoking extended period of limitation alleging suppression of facts is not sustainable. Supreme Court, High Courts and Tribunal have held that allegation of suppression of facts cannot be sustained if all relevant facts were in knowledge of department. Appellant was regularly filing ST-3 returns and therefore while issuing second SCN, same/similar facts could not be taken as suppression of facts as these facts were already in knowledge of authority. The impugned orders are set aside and appeals are allowed with consequential relief.
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