New Delhi, Aug. 28: Truckers called off their week-old strike early today after the government offered to consider some of their demands. However, the latter refused to scrap the imposition of 10 per cent service tax on goods transport agencies.

But the Centre has agreed to issue suitable notifications to make it clear that truck owners and truck operators do not have to either pay or collect service tax. Under the terms of the agreement, the rules will be finalised in consultation with a committee that will have transport industry and government representatives.

The panel will consider an appropriate mechanism for collection and payment of service tax by commercial concerns. It will submit its report within two months.

The decision to withdraw the strike, which started last Saturday, was reached after a marathon meeting lasting over nine hours, at the end of which finance ministry and surface transport ministry officials signed two separate agreements with the All-India Motor Transport Congress.

Truck convoys — stalled for a week on the outskirts of the capital — moved into Delhi soon after the strike was called off. Reports of normal truck movement filtered in from other parts of the country.

The government assured transporters that the income tax department will simplify the problem truck owners face with tax refunds. It has agreed to withdraw cases against transporters arrested under the Essential Services Maintenance Act when the strike was on.