9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (1) TMI 183 - AT - Service TaxBreaking/crushing of lime stones boulders and transporting the same from the mines - During the period in question, these activities were not under the category of production or processing of goods dept. proceeded to bring it under cargo handling service - Prima facie, this service cannot be classified under the category of Cargo Handling Service but the same is classifiable under Business Auxiliary Service - stay application is allowed
Issues: Classification of services under 'Cargo Handling Service' or 'Business Auxiliary Service'; Requirement of pre-deposit of Service Tax amount and penalties.
In this judgment by the Appellate Tribunal CESTAT, Bangalore, the appellant was required to pre-deposit a Service Tax amount along with penalties under the Finance Act, 1994. The dispute arose from the classification of the appellant's activities related to breaking/crushing of limestone boulders and transporting them from mines. The Department categorized the transportation of limestone under 'cargo handling service', while the appellants argued it should be classified as 'Business Auxiliary Service'. The learned DR contended that loading and unloading of crushed limestone falls under 'cargo handling service', which was opposed by the appellant's counsel, who cited relevant judgments and a Board Circular to support their classification argument. After hearing both sides, the Tribunal analyzed the facts and observed that the appellants' activities of breaking/crushing limestone boulders and transporting them did not fit under 'Cargo Handling Service' but were more appropriately classified as 'Business Auxiliary Service'. Consequently, the Tribunal allowed the stay application, granting a waiver of the pre-deposit amount and staying its recovery until the appeal's disposal. The matter was scheduled for final hearing on a specified date. The judgment highlighted the importance of correct service classification and provided relief to the appellant based on the classification analysis.
|
