2009 (7) TMI 18 - AT - Service Tax

Cargo handling service - activity of loading and unloading of goods - Unloading from wagon, loading into vehicle and transportation to SAIL warehouse and unloading, stacking at stipulated place inside the warehouse and loading into customers vehicles with weighment for delivery - The CBEC had clarified vide Circular No. 1/2002 dated 1.8.2002 that the services liable to tax are those provided by cargo handling agencies who undertake the activity of packing, unpacking, loading and unloading of goods meant to be transported by any means of transportation namely truck, rail, ship or aircraft Demand of duty and Penalty confirmed.

Summary

The judgment by the Appellate Tribunal CESTAT, CHENNAI, 2009 (7) TMI 18, involved a case where the appellants were found to be liable for service tax due to their activity of loading and unloading goods for Steel Authority of India Ltd. The appellants had bid successfully for a tender floated by SAIL for handling iron and steel materials at a specific warehouse. The work carried out by the appellants included unloading, loading, transportation, stacking, and loading into customers' vehicles. The definition of 'cargo handling service' as per Section 65(23) of the Finance Act, 1994, includes loading and unloading of cargo for transportation by various means. The CBEC had clarified that services provided by cargo handling agencies involving packing, unpacking, loading, and unloading of goods for transportation are taxable. As the appellants were engaged in loading and unloading goods for transportation, they were deemed to have provided cargo handling services and were thus liable for tax and penalty for non-registration. The tribunal upheld the impugned order and rejected the appeal. The judgment was delivered by Smt. Jyoti Balasundaram, Vice-President, with Shri R. Daiveekan representing the appellants and Shri R.P. Meena representing the respondent. The order was dictated and pronounced in open court. This summary provides a detailed analysis of the issues surrounding the liability of the appellants for service tax related to cargo handling services.