Goods Transport Agency classification for ready mix concrete transport upheld; demand under Supply of Tangible Goods service set aside.

Transportation of ready mix concrete from the recipient's site to its customers, with consignment notes stated to have been issued, was treated as Goods Transport Agency service under the negative list regime and not as Supply of Tangible Goods service. Relying on an earlier decision on materially similar facts, the service recipient was said to have discharged tax under reverse charge under Rule 2(d) of the Service Tax Rules, 1994. On that basis, the demand under Supply of Tangible Goods service was held unsustainable and set aside in favour of the assessee.

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Issues: Whether the transportation of ready mix concrete by the appellant for the service recipient was classifiable as Goods Transport Agency service or as a declared service under Supply of Tangible Goods service, and whether the resulting tax demand could be sustained.

Analysis: The period involved fell within the negative list regime. The appellant's activity consisted of transporting ready mix concrete from the recipient's site to customers of the recipient, and consignment notes were stated to have been issued. The dispute was treated as covered by an earlier decision on materially similar facts, where such transportation was held to be Goods Transport Agency service and the service recipient had discharged tax under reverse charge in terms of Rule 2(d) of the Service Tax Rules, 1994. On that footing, the demand raised under the category of Supply of Tangible Goods service was not sustainable.

Conclusion: The service was held to be classifiable as Goods Transport Agency service and not as Supply of Tangible Goods service, and the demand was set aside in favour of the assessee.

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