2025 (7) TMI 1265

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....rejected the appeal of the appellant and upheld the Order-in- Original. 2. Briefly stated facts of the present case are that the appellants are registered under the Service Tax. During the period from 2007 to 2012, the appellants had entered into contract with Grasim Industries Ltd (now knows as Ultra-Tech Cement Ltd) for supply of JCBs, Concrete Boom Pumps and Transit Mixtures to lift, feed, load/unload, bag cutting and to transport ready mix concrete mixture. As per the terms of the agreements dated 29.02.2008 and 01.04.2008, the appellants claim that they have provided "supply of tangible goods for use service" and "cargo handling service". Further, the appellants claim that they have transferred the right to effective use, possession a....

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....ared that the appellants have transferred the transit mixers to Grasim Industries along with the transfer of right of effective use, possession and control which transaction amounts to deemed sales and is outside the levy of service tax. 4.2 He further submits that the definition of taxable service as provided under Section 65(105)(zzzzj) of the Finance Act, 1994 provides that any service provided or to be provided to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances. 4.3 He further submits that the terms of the agreements clearly provide that the appellants....

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.... and possession of transit mixer stands transferred to the client, as per the terms and conditions of the contract. He also submits that the Tribunal in the case of Gunesh Logistics (supra), after examining the identical terms and conditions of the agreements with regard to another vendor of Grasim Industries Ltd, has held that the appellant therein has been rendering GTA service by transporting RMC from one place to another as per the directions of the service recipient. 4.6 As regards the demand raised under the head 'cargo handling service' as per the contract deed dated 01.09.2017 with M/s Birla Ready Mix (a unit of Grasim Industries Ltd), the learned Counsel submits that the said activity of cement bags unloading and cutting @Rs. 1.70....

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....sed to provide the services of drivers and also supposed to install the GPS system on the transit mixers. He further submits that the transaction cannot be held to be deemed sale because the appellants have not paid the VAT on the same. He further submits that the decisions (cited supra) relied upon by the appellants, are distinguishable on facts. 6. After considering the submissions made by both the parties and perusal of the material on record, we find that though the appellants have a good case on merits but the entire demand, according to our opinion, is barred by limitation as the period involved is April 2009 to November 2011 and the Show Casue Notice was issued on 22.10.2014 which clearly shows that the entire demand is barred by li....