Order Date – 14 May 2024

Parties: M/s Shreejee RMC Private Limited Vs Commissioner of C.G.S.T. & C.E., Rohtak

Facts –

• The Appellant, M/s Shreejee RMC Private Limited, is engaged in the business of manufacture and supply of Ready Mix Concrete to various projects.
• The Appellant was asked to furnish details of the gross amounts received by them as shown in ST-3 returns and 26AS statements; investigation was conducted and a show cause notice dated 21.04.2022 was issued to the appellant demanding service tax along with interest and penalty; the proposal in the show cause notice was confirmed.

Issue –

• Whether service tax can be levied on supply of ready mix concrete?

Order –

• The Tribunal observed that the Department though alleges that the appellant has rendered some services to M/s Signature Global (India) Pvt. Ltd, it has not been made clear what was the classification of the service and what was the consideration received for the same. In the absence of specific service being identified, it is not open for the Department to assume that some service was made and therefore service tax is payable.
• This approach is not legally sustainable; it is the responsibility of the person alleging to prove the allegation with evidence; the Department failed to do so; moreover, an attempt has been made to confirm the duty of service tax on the basis of discrepancy in various statements and figures. It has been held in number of cases that such confirmation of tax is not legally sustainable. 
• Further, the issue of exigibility of supply of ready mix concrete to service tax has been decided in number of cases. In the case of GMK Concrete Mixing Pvt Ltd has observed as “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 but not to provide any taxable service.”