2010 (4) TMI 451 - AT - Service Tax

Stay Goods Transport Agency Services Appellant submits that there was no question of any transport service used but hiring of mixer was object of the parties. Because the mixer mixes the concrete while it is in transit that does not amount to GTA service. The Appellant has also the benefit of time bar and also entitled to the benefit of abatement Notification. Held that - taxability of service by appropriate classification as well as abatement notification in question, it would be reasonable to direct pre-deposit of an amount of Rs.8 lakhs.

Summary

Issues involved:
1. Whether GTA service was provided to the Appellant without an agreement between the service provider and recipient.
2. Whether the use of a concrete mixer for mixing concrete in transit amounts to GTA service.
3. Whether the Appellant is entitled to the benefit of time bar and abatement notification.
4. Whether pre-deposit is required in the case based on the adjudication order.

Analysis:

1. The Appellant's counsel argued that no GTA service was provided as there was no agreement between the service provider and recipient, citing exhibit No. Annexure 7 of the work order. It was contended that the purpose was hiring a mixer for concrete mixing in transit, not transport service. The counsel claimed the Appellant is entitled to the benefit of time bar and abatement Notification No.01/06 dated 1.3.2006. The potential liability, if any, was estimated at around Rs.8 lakhs, subject to further arguments during the hearing.

2. The Departmental Representative (DR) contended that the adjudication order was correctly passed and upheld by the Appellate Authority, necessitating a pre-deposit in this case.

3. The Tribunal, after hearing both sides and examining the records, concluded that the case involved using a concrete mixer vehicle for mixing concrete in transit and transporting it to the destination. It was noted that the mixed concrete was carried through the vehicle during transit. Both lower authorities had concurrent findings against the allegations in the show cause notice.

4. Considering the time bar issue, taxability classification, and the abatement notification, the Tribunal directed a pre-deposit of Rs.8 lakhs within eight weeks, with compliance due by a specified date. The realization of the balance demand was stayed pending the appeal process, subject to the pre-deposit compliance.