Ready mix concrete supply treated as sale, not taxable service, and service tax demand was found unsustainable.

Supply of ready mix concrete was treated as a sales contract, not a taxable service, because the arrangement showed a dominant intention to supply goods and no cogent material established any service element. On that basis, the Finance Act, 1994 could not be applied to tax the commodity sale on a mistaken appreciation of fact and law, and the asserted service tax liability was unsustainable. The demand was therefore rejected in favour of the assessee.

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Issues: Whether the supply of ready mix concrete was a sale transaction or a taxable service liable to service tax.

Analysis: The contract was found to be one for supply of ready mix concrete, with no cogent evidence of any taxable service element in the overall transaction. The dominant object of the arrangement indicated a sales contract rather than a service contract, and the Finance Act, 1994 could not be invoked to tax the commodity sale under a mistaken appreciation of fact and law. The claimed service-tax liability was therefore not sustainable on the material before the Tribunal.

Conclusion: The issue was decided in favour of the assessee. The demand of service tax was held unsustainable.

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