Waste transport is not goods transport agency service when the material is not "goods" under service tax law.

Transportation of effluent waste for disposal was held outside the taxable category of goods transport agency service because the material did not qualify as "goods" under service tax law. The definition of goods was read with the Sale of Goods Act, 1930, and effluent waste meant only for disposal was treated as neither movable property in trade parlance nor goods purchased in commerce. On that basis, the service was not transportation of goods but disposal of waste, making the service tax demand unsustainable and the assessee's appeal successful.

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Issues: Whether transportation of effluent waste through goods transport agency could be taxed as goods transport agency service under service tax law.

Analysis: The relevant definition of "goods" under service tax law was applied by borrowing the meaning from the Sale of Goods Act, 1930. Effluent waste transported only for disposal was not movable property in trade parlance and was not something purchased as goods. As the service was for disposal of waste and not for transportation of goods, the activity did not fall within the taxable category of goods transport agency service.

Conclusion: The issue was decided in favour of the assessee. Transportation of effluent waste was held not taxable as goods transport agency service.

Final Conclusion: The demand of service tax on transportation of effluent waste was unsustainable and the appeal succeeded.

Ratio Decidendi: For service tax purposes, where the transported material is not "goods" within the statutory meaning of movable property, transportation of such material cannot be taxed as goods transport agency service.

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