2026-VIL-1784-CESTAT-DEL-ST
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SERVICE TAX CESTAT Cases

Service Tax – Classification of hiring of Transit Mixer machines for transportation of ready mix concrete as Supply of Tangible Goods Service and not Goods Transport Agency Service – Appellant-GTA provided Transit Mixer machines to a ready mix concrete company for transportation of ready mix concrete on monthly charges, with the driver, maintenance and diesel to be within the scope of the Appellant - On scrutiny of third party information, SCN was issued and the demand against hiring charges of Transit Mixer machines was confirmed by the adjudicating authority and upheld by the FAA after appropriating the tax already paid by the Appellant under transport of goods by road service - Appellant contended that the vehicles were provided for freight, that control of the vehicles was not handed over - Whether the hiring of Transit Mixer machines is a Supply of Tangible Goods Service chargeable to service tax on the full amount received or a Goods Transport Agency Service - HELD - The taxable service under Section 65(105)(zzzzj) covers supply of tangible goods for use without transferring right of possession and effective control. The test is whether the contract transferred both possession and effective control, which is a question of fact determined from the agreement and the manner of operation. Following the Hon'ble Apex Court, where substantial control remains with the contractor and is not handed over to the user, there is no transfer of the right to use the vehicles and the transaction is a service within the meaning of Section 65(105)(zzzzj). The Appellant provided the machines for transportation of ready mix concrete, and the driver, maintenance and diesel were to be undertaken by the Appellant. No evidence was submitted that the Appellant provided Goods Transport Agency Service or issued consignment notes - The case is covered by the Hon'ble Apex Court, the Appellant is liable to pay service tax on the full amount received, there is no infirmity in the impugned order - The appeal is dismissed
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