Waste effluent is not "goods" for GTA service tax, so its transportation falls outside the levy.

Transportation of effluent generated during effluent treatment was outside Goods Transport Agency service because the term "goods" under the service tax framework is taken from section 2(7) of the Sale of Goods Act, 1930. As the effluent was waste meant for disposal and was neither sold nor saleable in the market, it did not qualify as goods. On that basis, the transport activity was not liable to service tax under the GTA head, and the demand could not be sustained.

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Issues: Whether transportation of effluent generated during effluent treatment is liable to service tax under Goods Transport Agency service.

Analysis: The definition of "goods" for service tax purposes is adopted from section 2(7) of the Sale of Goods Act, 1930 through section 65(50) of the Finance Act, 1994. Goods Transport Agency service applies only where the transport is of goods within that definition. The effluent in question was waste material meant for disposal, was neither sold nor saleable in the market, and therefore did not answer the description of goods. On that footing, its transportation could not be brought within the taxable category of Goods Transport Agency service.

Conclusion: The transportation of effluent was not exigible to service tax under Goods Transport Agency service and the demand could not survive.

Final Conclusion: The impugned order was set aside and the appeal was allowed.

Ratio Decidendi: Waste effluent that is neither sold nor saleable does not constitute "goods" for the purpose of Goods Transport Agency service, and its transportation is outside the service tax levy under that head.

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