Tribunal rules pumping RMC not subject to service tax

The Tribunal dismissed the department's appeal regarding the liability of pumping charges for transporting Readymade Mix Concrete (RMC) through a pipeline for service tax. The Tribunal upheld the Commissioner (Appeals) decision that pumping RMC did not constitute transport of goods other than water through a pipeline subject to service tax, as the appellant had already paid taxes for RMC transportation and sales. Consequently, the Tribunal found no reason to interfere with the appellate authority's decision, resulting in the dismissal of the department's appeal.

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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.

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