2019 (4) TMI 1958 - AT - Service Tax

CENVAT Credit - Cargo Handling Services - service of maintenance and repairs of power plant post 16/06/2005 - HELD THAT - The repair and maintenance service admittedly the appellant was working as an individual. For the period prior to 16/06/2005, the appellant is carried out repairs and maintenance of immovable equipments and from 16/06/2005 such requisite of repairs of such equipments became taxable, therefore, the appellant is not liable to pay service tax under the category of maintenance and repair services prior to 16/06/2005, but post 16/06/2005 the appellant is liable to pay service tax. If same is not paid, the appellant is liable to pay serviced tax and interest thereon also. But, no penalty is imposable as the appellant is aggitating that it is an issue of interpretation. Cargo Handling Service - HELD THAT - Mere transportation of goods is not covered under the category of cargo handling services. Moreover, where the cargo handling service the activity of loading and unloading of cargo is not liable to service tax, the said view was taken by Tribunal in the case of DALVEER SINGH VERSUS COMMISSIONER OF CENTRAL EXCISE 2007 (11) TMI 83 - CESTAT, NEW DELHI , therefore, the appellant is not liable to pay service tax under the cargo handling service. The appellant is liable to pay service tax under the category of maintenance and repair service post 16/06/2005 (if same is not paid, same is to be paid alongwith interest), no penalty is leviable. Under the category of cargo handling services, the service tax demand is set aside - appeal disposed off.

Summary

Issues:
Appeal against demand of service tax for maintenance and repairs services pre and post 16/06/2005, and cargo handling services.

Maintenance and Repair Services:
The appellant, a proprietorship firm, provided maintenance and repair services for power plants and material shifting from 2004-2009. The demand for service tax was contested based on the exemption prior to 16/06/2005 for maintenance and repair of immovable structures. The appellant argued that pre-16/06/2005, maintenance and repairs of immovable structures were exempt from service tax when provided by an individual. The Tribunal held that the appellant is not liable to pay service tax under the category of maintenance and repair services for the period before 16/06/2005. However, post 16/06/2005, the appellant is liable to pay service tax for such services, along with interest if not paid. No penalty was imposed as the issue was deemed an interpretation matter.

Cargo Handling Services:
The appellant's liability for service tax related to cargo handling services was also disputed. The appellant contended that mere transportation of goods did not fall under the category of cargo handling services. The Tribunal referenced a previous case to support the view that the loading and unloading of cargo was not liable to service tax. Consequently, the Tribunal held that the appellant is not required to pay service tax under the cargo handling service category.

Conclusion:
The Tribunal's order specified that the appellant is liable to pay service tax for maintenance and repair services post 16/06/2005, with interest if not paid, but no penalty is applicable. Regarding cargo handling services, the demand for service tax was set aside. The appeal was disposed of accordingly.