TaxTMI 
TaxTMI 
2023 (10) TMI 1114
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.... a rotating drum so as to avoid setting in of the concrete, the appellant undertakes the transportation of RMC in transit mixers for its customers. The appellant also issues consignment notes for each trip of transportation and raises periodical bills for transportation charges. As per the work orders, the charges for transportation of RMC are paid to the appellant, both in terms of the quantity of RMC transported and as per the distance travelled on km basis. 3. A show cause notice dated 10.04.2015 was issued to the appellant for the period 2013-2014 alleging that the appellant had actually rendered supply of tangible goods service, which would be taxable under section 65B (44) of the Finance Act [The Finance Act], 1994 and would be a declared service under section 66E (F) of the Finance Act. According to the show cause notice, the appellant had supplied tangible goods namely "transit mixtures" to the clients, but had not paid service tax. The appellant filed a reply dated 07.07.2015 to the aforesaid show cause notice. 4. Subsequently, another show cause notice dated 22.04.2016 was issued to the appellant for the period April 2014 to September 2015 proposing demand of service ta....
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....ri Mahesh Gupta. Dear Sir, Sub: Work order for transportation of Ready Mix Concrete in Vehicle/Vehicles from our Jaipur VKI Ready Mix Plants at Jaipur. With reference to your offer and our subsequent discussion, we are pleased to hereby award you contract for transportation of Ready Mix Concrete from our plants at Jaipur on the terms and conditions as given below: 1. a) You should transport the RMC (Ready Mix Concrete) to the desired destination in your vehicle in accordance with Prudent Industrial Factories. b) You may also be required to transport slurry or water from our plant to the desired destination. 2. For this purpose you will deploy fleet of 6 MB Capacity of Vehicles mounted on suitable chassis in numbers adequate to transport 1490 MB of Ready Mix Concrete every month. 3. The services shall commence with effect from 01.03.2013. 4. This contract shall be valid from 1 March 2013 to 01 May, 2013. 5. You will ensure prompt and quality services. You will ensure that the Vehicles used for providing are goods conditioned vehicles. 6. It shall be your responsibility to ensure transportation and delivery of material within time given as per schedule. 7. Y....
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....nt statutory provisions, the Tribunal held as follows: "18. Section 66B provides that there shall be levied a tax to be referred to as service tax on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such a manner as may be prescribed. The „negative list‟ is provided for in Section 66D of the Act. Section 65B(44) of the Act as inserted w.e.f. 1 July, 2012 defines „service‟ to mean any activity carried out by any person for another for consideration and includes a declared service but would not include certain services specified in clauses (a), (b) and (c). Declared services have been enumerated in Section 66E of the Act. Sub-clause (f) of Section 66E, which is relevant for the purposes of the controversy involved in this appeal, is as follows:- "(f) transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;" 19. The appellant claims to be transporting RMC in vehicles under the contract awarded by the customers, particularly Grasim Industries Ltd. and U....
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....the terms and conditions mentioned in the work order. Condition No. 1 of the work order is that the appellant shall load RMC in the vehicle and transport the same to the required destination and unload it at the customer's site. Merely because the work order requires the appellant to deploy a fleet of 6M3 capacity vehicles for transport of 9000 M3 of RMC every month does not mean that the appellant has given vehicles on hire. The work order only requires the appellant to ensure that it has available a fleet of vehicles adequate enough to transport a particular quantity of RMC every month. Even the transportation charges are under two heads. The first is payment of a certain amount for the quantity of RMC transported during a calendar month and a certain amount per km for the distance travelled for transportation of RMC during the month. 22. It is for this reason that the appellant had contended that the activity of transportation of RMC by road falls under the taxable service GTA. However, this contention of the appellant has not been accepted by the Commissioner for the reason that clause 12 of the work order deals with a minimum quantity of RMC to be transported per month p....
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....r a service to qualify as a GTA service: (i) There should be an activity in relation to transport of goods by road; (ii) Issuance of consignment note by the GTA; (iii) Activity is performed by a GTA for another; and (iv) Activity is performed for consideration. 27. It cannot be doubted that the first condition with regard to both pre-negative list and the post-negative list is satisfied since RMC has been transported by the appellant using transit mixers of the appellant by road. The second condition relating to issuance of consignment note by GTA in the pre-negative list period and the post-negative list period is also satisfied as the appellant had issued the consignment notes. The third condition in the post-negative list period is that the activity should be performed by the GTA for another. It cannot be doubted that the appellant has undertaken the transportation of RMC for the mine owners. The fourth condition of the post-negative period is that the activity should performed for a consideration. It cannot also be doubted that the appellant is receiving consideration from the service recipient as is clear from the invoices raised by the appellant to the service recip....