Service Tax - Supply of Ready Mix Concrete - Not a Taxable service - SC Dismisses Revenue Appeal-
THE respondent was engaged in preparation of ready mix concrete (RMC). While carrying out such dominant objects other ancillary and incidental activities were also carried out.
The CESTAT in the case of GMK Concrete reported by us in 2012-TIOL-137-CESTAT-DEL held,
Record does not reveal involvement of any taxable service aspect in the entire supply of RMC. Rather the contract appears to be a sales contract instead of a service contract. In absence of cogent evidence to the effect of providing taxable service, primary and dominant object of the contract throws light that contract between the parties was to supply ready mix concrete (RMC) but not to provide any taxable service. Finance Act 1994 not being a law relating to commodity taxation but services are declared to be taxable under this law, the adjudication made under mistake of fact and law fails .
Revenue took the matter in appeal to the Supreme Court.
The Apex Court in an order dated 6th January 2015 dismissed the appeal by observing, “ Having gone through the records of the case, we are of considered opinion that the appeal, being devoid of any merit, is liable to be dismissed and, is dismissed accordingly. ”
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