2017 (8) TMI 1308 - AT - Service Tax

Transport of Readymade Mix Concrete (RMC) from their plant to the site of their customers through transit mixer and pumping the same with the help of pumps - Department was of the view that this activity of pumping appeared to fall under the category of transport of goods other than water through pipeline or through other conduit and liable to levy of service tax - Held that - the said activity would not fall within the ambit of transport of goods other than water through pipeline or through other conduit. The appellants have already paid service tax on the transportation of RMC. So also they have discharged sales tax on the sale of RMC. The activity of pumping the RMC does not fall under the said category of services - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Whether pumping charges for transporting Readymade Mix Concrete (RMC) through pipeline are liable for service tax.

Analysis:
The case involved a dispute regarding the liability of pumping charges for transporting RMC through pipeline to the site of customers for service tax. The department alleged that the activity of pumping fell under the category of transport of goods other than water through pipeline, thus attracting service tax. The original authority confirmed the demand for service tax but dropped the proposal for penalties. In appeal, the Commissioner (Appeals) set aside the entire demand, leading to the department filing the present appeal.

The appellant contended that they had already paid service tax for the transportation of RMC from the manufacturing site to the customer's location using transit mixers. They argued that the demand was only for the pumping charges from RMC to the site through a pipeline, which, according to them, did not fall under the purview of the services alleged by the department. The respondent's counsel emphasized that the pumping of RMC should not be considered as transport of goods through a pipeline other than water.

The Tribunal noted that the Commissioner (Appeals) relied on a previous order in the appellant's case from the Commissioner (Appeals), Hyderabad, which concluded that pumping RMC did not fall within the scope of transport of goods other than water through a pipeline. The appellant had already paid service tax for RMC transportation and sales tax on RMC sales. The Tribunal agreed that pumping RMC did not fall under the category of services subject to service tax, as correctly analyzed in the impugned order. Consequently, the Tribunal found no grounds to interfere with the appellate authority's decision, leading to the dismissal of the department's appeal.