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TMI Blog2014 (6) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... transportation of stores materials such as plant, machinery, equipments, etc. at the plant site including crushing of coke breeze meant for Visakhapatnam Steel Plant, job contract for miscellaneous works awarded from time to time, supply of LCVs and packing of materials for transportation. Thus, a number of services are required to be provided by the appellant. While handling of stores materials along with internal transportation might merit classification under cargo handling service. We have also pursued some of the invoices raised by the appellant on the service recipient which describes the activities as transportation and the payment is made to the appellant based on the quality of goods transported. Similarly, the appellant has pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax, Visakhapatnam-I Commissionerate confirmed service tax demands of Rs.1,05,22,657/- under the category of Cargo Handling service and an amount of Rs.63,43,575/- under the category of Support Service of Business or Commerce service along with interest and equivalent penalties under the provisions of Finance Act, 1994 against the appellant, M/s. Srinivasa Transport, Visakhapatnam. Aggrieved of the same, the appellant is before us. 3. Ld. Counsel for the appellant submits that as regards Business Support Service (BSS), the appellant provided internal transportation of containers with Tractor-Trailers inside the Visakhapatnam container terminal to M/s. Visakhapatnam Container Terminal Pvt. Ltd. (VCTPL). As per the contract entered into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant to M/s. RINL would not come within the purview of cargo handling service. Reliance is placed on the decision of the Tribunal in the case of Modi Construction Co. Vs. C.C.E., Ranchi [2008 (12) S.T.R. 34 (Tri. - Kolkata)], wherein it was held that shifting/transportation of raw-materials, waste materials and finished products from one place to another inside a plant would not come under the category of Cargo Handling Service . The said decision of the Tribunal was also affirmed by the Hon ble High Court of Jharkhand in C.C.E., Ranchi Vs. Modi [2011 (23) STR 6 (Jhar.)]. Therefore, the impugned demands are not sustainable and accordingly the ld. Counsel pleads for grant of stay. 5. The ld. Departmental Representative appearing for the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant would be liable to discharge service tax liability under the category of Business Support Service. Accordingly, he prays for upholding the impugned order and putting the appellant to terms in the interim. 6. We have carefully considered the submissions made by both the parties. After considering the submissions made, we observe that the issue for consideration in this case lies in a narrow compass and therefore, the appeal itself can be decided at this stage. Hence, after dispensing with the requirement of pre-deposit and with the consent of both the sides, we take up the appeal itself for consideration and disposal. 7. As regards the demand of service tax under the category of Business Support Service, Section 65 (104c) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quirements of labour laws, etc. The appellant is also required to provide prescribed number of Tractor-Trailers for undertaking the transportation of containers within the terminal of specific dimensions. For the work rendered, the appellant is compensated @ of Rs.200/- for 20 ft. Container and Rs.255/- for 40 ft. Container. Thus, the services rendered by the appellant appears classifiable under the category of Supply of Tangible Goods for Use (STGU) service as defined in Section 65 (105) (zzzzj) of the Act, which defines the service as supply of tangible goods including machinery, equipments and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances . In the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services are required to be provided by the appellant. While handling of stores materials along with internal transportation might merit classification under cargo handling service in the light of the decision of Hon ble High Court Orissa in the case of Coal Carriers supra, other activities such as crushing of coke breeze, job contracts for miscellaneous works awarded from time to time, etc. would not come under the purview of cargo handling service. Similarly, supply of LCVs would also not come within the purview of cargo handling service. We have also pursued some of the invoices raised by the appellant on the service recipient which describes the activities as transportation and the payment is made to the appellant based on the quality ..... X X X X Extracts X X X X X X X X Extracts X X X X
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