GTA service - liability to pay service tax on freight is on the consignee or consignor - consignor get the reimbursement from the consignee - penalty under Section 77 & 78 - Held that:- If the person is covered under the category (a) to (g) of clause (v) of Rule 2(1)(d) above and if that person pays the freight towards the GTA services, he is that person who is liable to discharge the service tax. In the present case, it is undisputed fact that the GTA services were provided by the transporter for transportation of the goods to the appellant through its consignee. For the said GTA services it is the appellant who has paid the freight to the transporter. - they have taken reimbursement from the consignee after paying freight to the transporter.
The argument that, since they were not liable to pay the freight to the transporter, they are not liable for service tax is not acceptable - appellant is legally responsible to discharge the service tax. - decision of S.R. Drugs [2011 (6) TMI 493 - CESTAT, MUMBAI] distinguished - Decision in the case of Essar Logistics [2014 (6) TMI 763 - CESTAT AHMEDABAD] followed - Decided against assessee.
Indian Oxalate Ltd Versus Commissioner of Central Excise, Kolhapur 2015 (5) TMI 107 - CESTAT MUMBAI