9911796707
TMI Blog2008 (6) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... from source location to its air cargo station at destination location. It was specifically pleaded that the service entry 'Transport of goods by Air" was introduced with effect from 10.9.04 without making any changes in the previous entries, by itself shows that they are covered by the new entry with effect from the said date and are required to pay the service tax from the date onwards. (b) The show cause notice was adjudicated by the Deputy Commissioner, who accepted the appellant's stand that they cannot be held liable to tax under the category of Cargo Handling Services, and dropped the demand against them. The said order of Deputy Commissioner was reviewed by the Commissioner by issuing show cause notice and stands reversed by the Commissioner vide his impugned order. Hence the present appeal. 2. The appellant raised the following submissions before the Commissioner , which for ready reference, are being reproduced below; (a) Jet Airways is engaged in the business of air transportation of passengers and goods and in the case of Cargo transportation services, the cargo is booked either at Jet Airway's booking office or by agents appointed at various locations all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... self categorically excludes ' mere transportation of cargo' from its purview. Jet Airways undertakes only the transportation of cargo. Every transporter has to load the cargo on the transport vehicle at the starting point of journey and unload it at the destination point, either by itself or some third parties may do it on behalf of the transporters/customers . If one holds that every transporter handles the cargo while loading and unloading at the beginning of journey and destination , then the term 'mere transportation of goods' becomes redundant. One cannot imagine mere transportation of goods without entailing loading or unloading activity. (e) They give the reference of Circular No.F.No.B-11/1/2002-TRU dated August, 1, 2002, seek to clarify the scope of services covered under the category of cargo handling service'. It mentions the well known examples of cargo handling service and lists of service provided by Container Corporation of India, Airport Authority of India, Inland Container Depots, and Container Freight Stations. The illustrative list does not refer to any reference to any airlines actually undertaking the transport. All the examples refer to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both sides, we find that the appellant is admittedly an Airline engaged in the business of transportation of passenger and 'cargo. For the said purpose, the appellant takes booking of the cargo which is to be transported either by himself at its booking office or through IATA agents appointed at various locations all over the country. The cargo booked by the cargo agents are directly transported by the cargo agents to the warehouse at the Airport for uplift to the destination through the Airlines of the appellants. The loading/unloading activity is done by M/s Philipson Corporation in terms of agreement entered into between the two. The cargo which is unloaded at the destination is transported to warehouse of the appellant and the consignee/agent of the consignor collect the cargo from the warehouse of the appellant. The appellant neither collects the cargo from the consignor premises nor deliver the same to the consignee of the cargo. The activity undertaken by them is transportation of the cargo from its air cargo station at source location to its air cargo station at destination location, for which the charges as detailed in the preceding paragraph are received by them. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be cargo handling services. As rightly observed by the Deputy Commissioner , the primary duty of every transport operator i.e. road, rail or airport to provide facilities of packing/unpacking, loading/unloading of goods to the customer for promotion of business, and if all these services are covered under the category of 'cargo handling services, it will create a preposterous situation for the department, where each and every transport operator such as Railways, Roadways would be covered under cargo handling services and the new services of transport of goods by the Air or Road will become redundant as transport of goods cannot be envisaged without loading/unloading. 6. We also further note that the Board circular issued by F.No.B2/8/2004-TRU dated 10.9.04 in the case of "transport of goods by air services" explains - In addition to the actual air freight charges, all charges collected towards storing, handling, loading , and unloading (done in relation to air transportation of cargo) by an airlines are also chargeable to this levy. Therefore, it can be said that such services of loading/unloading provided by the Airlines were not covered under the cargo handling services, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
