The local transporters are finding themselves in a piquant situation. Even before the Union government has passed the Budget, in which the government has proposed a 10 per cent service tax on transport industry, the state owned companies are flexing their muscles to pass on the effect of service tax on to the transporters. In its latest tender, the state-owned oil company Hindustan Petroleum Corporation Ltd on August 10 stated: "The octroi/terminal or any other tax only on our products, if any paid by the transporters will be reimbursed by the corporation on production of original receipt. Toll/entry charges and service tax shall not be reimbursed by the corporation.'