Case Details: GUNESH LOGISTICS Versus COMMISSIONER OF CGST & CENTRAL EXCISE, JAIPUR- (2025) 26 Centax 324 (Tri.-Del)
Judiciary and Counsel Details
- Justice Dilip Gupta, President & Shri P.V. Subba Rao, Member (T)
- Ms Poorvi Asati, Adv., for the Appellant.
- Ms Jaya Kumari, Authorized Representative (DR), for the Respondent.
Facts of the Case
The appellant was engaged in transporting Ready-Mix Concrete (RMC) using its own vehicles. It entered into agreements with customers to transport RMC and issued consignment notes for each trip, billing based on quantity and distance. The department issued show-cause notices alleging that the appellant was providing a supply of tangible goods service (specifically, transit mixers) and that the activity resembled vehicle leasing, for which service tax was due. The appellant argued that it was providing GTA services, not leasing vehicles or supplying tangible goods. The adjudicating authority upheld the demand for service tax, and the appellant’s appeals were dismissed. The appellant had previously received a favourable ruling for the period 2009-2013 in a case involving similar facts. The appellant then brought the issue before the Tribunal.
CESTAT Held
The Honourable Tribunal, after considering the facts and submissions, ruled in favour of the appellant. It observed that the appellant was engaged in the transportation of RMC using its own vehicles as per the work orders. The Tribunal clarified that the appellant’s activity was not the supply of tangible goods or vehicle leasing, but instead, it was correctly classified as a transportation service under the Goods Transport Agency (GTA) category. The earlier ruling in favour of the appellant for the period 2009-2013 was upheld, and the demand for service tax, along with penalties, was set aside.
List of Cases Cited
- Commissioner v. Ultratech Concrete — 2018 (9) TMI 1204-CESTAT Chennai — Distinguished [Paras 7, 15, 16]
- G.S. Lamba & Sons v. State of Andhra Pradesh — 2015 (324) E.L.T. 316 (A.P.) — Distinguished [Paras 7, 15, 16]
- Gunesh Logistics v. Commissioner — 2020 (37) G.S.T.L. 193 (Tribunal) — Relied on [Paras 6, 12, 17]
