2018 (10) TMI 473

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....08, the appellant herein entered into various lease contracts with the owners of special purpose vehicles (transit mixer vehicles); the said vehicles were used for transportation of ready mix concrete from the plant to the site; appellant paid amounts to the owners of the vehicles as per the lease contracts entered with them on the basis of distance travelled in KMs. It is the case of the revenue in the show cause notice that such amount paid by the appellant would constitute an amount payable for transportation of the goods and would be covered under the category of Goods Transport Agency services and by applying the reverse charge mechanism, appellant needs to discharge the tax liability along with interest and also penalty which was prop....

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....dings of the adjudicating authority. 5. On careful consideration of the submissions made we find that the issue that falls for our consideration is whether the amounts paid by the appellant for leasing of special purpose vehicles for transportation of ready mix concrete would fall under Goods Transport Agency services or otherwise. Learned counsel was correct in bringing to our notice that similar issue in respect of the very same assessee is decided by Tribunal in Final Order dated 15.03.2018. We reproduce the entire judgment herein below: "Brief facts are that the appellants are engaged in the business of execution of civil, mechanical, structural and electrical contracts, manufacture and supply of Ready Mix Concrete (RMC) etc. They....

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....xture Vehicle (TMV) for transportation. The transaction would show that the effective control and possession over the TMV is retained with the appellant. The terms and conditions of the contract has been extracted in para 7.2 of the Order-in-Original which would go to show that the transaction is in the nature if deemed sale and thus would amount to 'transfer of right to use goods'. The Hon'ble High Court of Andhra Pradesh in the case of G.S. Lamba Vs State of Andhra Pradesh - 2015 (324) ELT 316 (AP) on the similar set of facts held that the transfer of right to use goods is liable to VAT. That, therefore the demand of service tax alleging that transit vehicles for transportation of RMC from place of manufacture to place of delivery is not ....