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TMI Blog2022 (11) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... ticular place and thereafter shifted the same to a different particular place at site. Due to peculiar nature of RMC, it is unavoidable to deliver at particular place where the RMC is required to be laid-down. It is also the fact that appellant being manufacturer of RMC, paying excise duty not only on the value of the goods but also on the value of service of pumping, laying of concrete and the same is included in the sale value. Therefore, no value is escaped from payment of excise duty. Accordingly, the entire activity right from the manufacturing of RMC and delivery at the site of the customer is excisable activity. Merely because the contract says that it is works contract, the actual nature of transaction cannot be overlooked. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir arguments - the demand is set aside on the ground of time bar. The appeal is allowed. - SERVICE TAX Appeal No. 10059 of 2022-DB - FINAL ORDER NO. A/11366/2022 - Dated:- 14-11-2022 - MR. RAMESH NAIR, MEMBER (JUDICIAL) AND MR. RAJU, MEMBER (TECHNICAL) Shri A. Banerjee, Advocate for the Appellant Shri R P Parekh, Superintendent (AR) for the Revenue. ORDER The brief facts of the case are that the appellant are engaged in the manufacture of Ready-Mix-Concrete(RMC) falling under the chapter heading 38245010 of the first schedule of the Central Excise Tariff Act, 1985 and they had been discharging their Central Excise liabilities on the manufacturing of RMC @2% in terms of Sr.No. 46 of the Notification No. 01/2011-C.E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anded and penalties were imposed on the appellant. Therefore, being aggrieved with the impugned order the appeal is filed by the appellant before us. 2. Shri A. Banerjee, Learned Counsel appearing on behalf of the appellant submits that the contracts based on which the service tax demand is confirmed are related to Concrete providing and laying at the buyers premise. The product ready mix concrete attract Central Excise Duty @2% and is classified under Central Excise Tariff heading 38245010. The goods have a very limited shelf life so this product if manufactured away from the buyer s premises has to be transported and laid at the place specified by the buyer and thus cost of the product includes all the incidental and ancillary services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - reflected in Balance Sheet but actually the appellant is only engaged in manufacture of Ready Mix Concrete and no other outward supply of services involved so the appellant would be eligible for small scale service provider exemption to the turnover limit of taxable services of Rs. 10 Lacs as per the Service tax Notification No. 33/2012-ST dated 20.06.2012. Hence there is no service tax demand surviving in the case also. 5. As regard the demand of service tax on reverse charge mechanism for legal charges to the tune of Rs. 5,900 he submits that this demand is hit by bar of limitation as the Appellant has been audited vide Audit report No. 965/2018-19/CE in the year 2018-19 covering the period April 2013 to 2017. 6. Shri R P Parekh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncrete and the same is included in the sale value. Therefore, no value is escaped from payment of excise duty. Accordingly, the entire activity right from the manufacturing of RMC and delivery at the site of the customer is excisable activity. Merely because the contract says that it is works contract, the actual nature of transaction cannot be overlooked. The appellant is treating the transaction of Works Contract in terms of VAT Act only. However, there is a specific definition of Works Contract in the Finance Act, 1994 which reads as under:- (54) works contract means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve, we are of the clear view that the activity of the appellant is predominantly of manufacture and sale of goods. Accordingly, the same cannot be charged with service tax under Works Contract service. 12. As regard to the service tax demand on supply of tangible goods service, the appellant has put forward the contention that it would be within the threshold limit. The details of rent collected covered by the show cause notice for the year 2016-17 is of Rs. 1,50,000/- and 2015-16 is NIL. It would go to show that the amount related to supply of tangible goods service is within the threshold limit of exemption of service tax provided under the Notification 33/2012-ST. dated 20.06.2012. Therefore, we are of the view that the demand of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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