Goods Transport Service classification for Ready Mix Concrete transport prevailed over supply of tangible goods treatment.

Transportation of Ready Mix Concrete by road under consignment notes, with loading, movement and unloading by transit mixers, was treated as Goods Transport Service rather than Supply of Tangible Goods Services because the arrangement was for carriage of goods and not hiring of vehicles. Applying its earlier identical ruling and the principle of judicial discipline, CESTAT New Delhi held that the mere use of transit mixers did not change the character of the service. The service tax demand, along with interest and penalties, was therefore not sustainable and the Revenue's appeal was dismissed.

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Issues: Whether transportation of Ready Mix Concrete through Transit Mixers under the described contractual arrangement constituted Goods Transport Service and not Supply of Tangible Goods Services, and whether the demand of service tax, interest and penalties could be sustained.

Analysis: The Tribunal applied its earlier decision on identical facts and noted that the assessee was engaged in transportation of Ready Mix Concrete by road from one place to another under consignment notes and not in hiring out vehicles. The arrangement required loading, transporting and unloading the material, and the mere use of Transit Mixers did not convert the activity into supply of tangible goods. The Tribunal also relied on the principle of judicial discipline and found the facts and service recipient to be the same as in the earlier binding view.

Conclusion: The activity was held to be Goods Transport Service and not Supply of Tangible Goods Services. The service tax demand and consequential interest and penalties were not sustainable, and the Revenue's appeal was dismissed.

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