Panoli Enviro Technology Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
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.
Facts:
M/s Panoli Enviro Technology Limited (“the Appellant”) raised the query regarding the applicability of service tax on GTA in relation to the transportation of effluent (‘liquid sewage waste’) generated during the effluent treatment process carried out by the Appellant.
The Appellant submitted that the transportation of effluent is not for sale, moreover the effluent is not in the saleable condition therefore, the transportation of effluent not liable to service tax because the definition of GTA which states that ‘any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.’
Since, the definition only covers transportation of goods and the effluent is not good thus, the transportation of effluent will not attract service tax.
The Appellant relied upon the judgement of Gujarat State Fertilizers & Chemical Limited [2015 (37) STR 1076 (Tri. Ahmd.)] wherein it was held that the effluent discharge is not purchased by any person and is only being disposed by utilizing the services of GTA. As the relevant facilities/services of transportation provided by Appellant are not the ‘goods’ the same cannot be considered as a service provided for transportation of goods.
Issue:
Whether the GTA is liable to receive service tax on transportation of effluent which is not goods as per the definition under the Sales of Goods Act?
Held:
The CESTAT, Ahmedabad in Service Tax Appeal No. 10813 of 2013 held as under:
