Effluent couldn't be regarded as goods; its transportation through pipeline not liable to service tax
[2015] 56 taxmann.com 448 (Ahmedabad - CESTAT)
CESTAT, AHMEDABAD BENCH
Gujarat State Fertilizers And Chemicals Ltd.
v.
Commissioner of Central Excise, Vadodara
Section 65(105)(zzz) of the Finance Act, 1994 - Taxable services - Transport of goods other than water through pipeline or other conduit services - Assessee was providing services of transportation/disposal of 'effluent waste' through its pipeline or conduit to on some consideration - Department demanded service tax thereon - Assessee argued that effluent waste is not goods; hence, service is not taxable - HELD : Effluent discharge facility is for disposal of a waste which is not being purchased by any person but is only being disposed of by utilizing services of assessee - As relevant facilities/services of transportation provided by assessee are not for 'goods', same cannot be considered as 'transport of goods' and hence, not taxable [Para 4.3] [In favour of assessee]
Section 65(50), read with section 65B(25) and 65B(44), of the Finance Act, 1994 and section 2(7) of the Sale of Goods Act, 1930 - - Goods - Meaning of - Assessee argued that 'effluent waste' is not a movable property and is a hazardous waste which cannot be considered as a movable property as per definition of 'goods' given in section 2(7) of Sale of Goods Act, 1930 - Department argued that under service Tax law it is not necessary that an activity should be necessarily in relation to goods bought and sold in market - HELD : Movable property in general trade parlance is considered as a property in goods which can fetch certain price - In this case, effluent waste is not being purchased by any person but is disposed of - Hence, same is not goods [Para 4.3] [In favour of assessee]
Note :Under present law, even if waste is not 'goods', transport thereof is taxable because negative list contains transport of 'good's only.
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