No service tax on transportation of articles which are not goods as per Sales of Goods Act

Last updated: 08 August 2023
Quick Summary
The CESTAT, Ahmedabad has ruled that service tax does not apply to the transportation of effluent. The tribunal determined that effluent, being liquid sewage waste, does not qualify as 'goods' under the Sales of Goods Act, 1930. As Goods Transport Agency (GTA) services are only applicable to the transport of 'goods', the transportation of effluent falls outside the scope of service tax.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in M/s Panoli Enviro Technology Limited v. Commissioner of Central Excise & ST, SURAT-II [Service Tax Appeal No. 10813 of 2013-DB dated July 07, 2023] held that the effluent does not qualify to be a 'good' as per the Sales of Goods Act, 1930 ("the Sales of Goods Act") and as per definition of Goods Transport Agency ("GTA") only the transportation of 'goods' is covered under GTA service. Thus, transportation of effluent by GTA is out from the ambit of service tax.

Citation :
Service Tax Appeal No. 10813 of 2013-DB dated July 07, 2023

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Bimal Jain
Published in GST
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