SALE OF STEAM

[vishal sharma]

One of my client is having surplus steam generated, which it intends to sell.

Whether service tax will be applicable on it.

Thanks

[Rama Krishana]

In my first view, i am unable to convince myself about the levy of service tax on sale of surplus steam.

[YAGAY andSUN]

Sale of Steam will attract VAT as it falls under the category of goods.  Service Tax will not be applicable on such transactions.

[KASTURI SETHI]

UPDATION

Steam is excisable goods falling under Chapter 28 of Central Excise Tariff Act, 1985 attracting NIL rate of Central Excise duty vide Notification No.12/2012-CE dated 17.3.12 as amended. Hence no Service Tax.

AI Summary

Sale of goods: surplus steam treated as goods (excisable with nil rate), thus not liable to service tax. Sale of surplus steam is a sale of goods and attracts turnover-based tax (VAT), not service tax. Steam is classified as an excisable commodity under the Central Excise Tariff (Chapter 28) and is subject to a nil excise rate by notification; accordingly, service tax does not apply to such sales.