CESTAT, Chennai Bench
Commissioner of Service Tax, Chennai vs. RMC Readymix India (P.) Ltd.
Sulekha Beevi C.S., Judicial Member And Madhu Mohan Damodhar, Technical Member
Final Order No. A/41563/2017
Appeal No. ST/505/2009
August 9, 2017
ORDER
1. Brief facts of the case are that the respondents where transporting Readymade Mix Concrete (RMC) from their plant to the site of their customers through transit mixer and pumping the same with the help of pumps for which they were collecting pumping charges separately. The department was of the view that this activity of pumping appeared to fall under the category of “transport of goods other than water through pipeline or through other conduit” and liable to levy of service tax. A show cause notice was issued alleging the same and proposing for demand of service tax along with interest and also for imposing penalty. After due process of law, the original authority confirmed the demand along with interest, however, dropped the proposal for penalties. In appeal, the Commissioner (Appeals) set aside the entire demand against which the department has filed the present appeal.
2. The learned AR Shri S. Govindarajan reiterated the grounds of appeal.
3. On behalf of the respondent, learned counsel Shri V.S. Manoj submitted that the activity of pumping RMC would not fall under the category of “transport of goods other than water through pipeline or through other conduit”. That appellant has paid service tax for the transportation of RMC from the place of manufacture by transit mixer to the place of customer and the demand is only for the pumping charges from the RMC to the spot through pipeline which would definitely fall outside the purview of the services alleged by the department.
4. Heard both sides.
5. In the impugned order, Commissioner (Appeals) has relied upon an order passed by the Commissioner (Appeals), Hyderabad, in the appellant’s own case, wherein it has been held that the said activity would not fall within the ambit of “transport of goods other than water through pipeline or through other conduit”. The appellants have already paid service tax on the transportation of RMC. So also they have discharged sales tax on the sale of RMC. The activity of pumping the RMC does not fall under the said category of services which has been correctly analyzed and discussed in the impugned order. Therefore, we do not find any ground to interfere in the order passed by the appellate authority and the appeal filed by the department is dismissed.
[Citation : 2017-Taxcaselaw-78-CESTAT-Chennai-GST]
