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TMI Blog2017 (9) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant also undertakes other activities of packing etc., if so desired by its customers, which are optional. Thus, the modus operandi adopted by the appellant transpires that the principal aim and objective is for transportation of goods and providing of other services are incidental and ancillary to the main purpose of transportation. The decision in the case of Drolia Electrosteels Pvt. Ltd. [2015 (12) TMI 161 - CESTAT NEW DELHI] is squarely applicable to the facts of the present case, wherein by relying on the CBEC Circular No.104/7/2008-S.T., dated 06.08.2008, the Tribunal has held that the service provided by M/s Hira Industries (appellant therein) merits classification under the GTA service and not under Cargo Handling Service. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial and household goods. In case of transportation of commercial goods, the appellant receives such goods in packed condition from the customers and transports the same without involvement of any labour, packing material or other support services from its side. Since, the customers are mostly corporate companies, the service tax liability is discharged by those customers under reverse charge mechanism in terms of Rule 2(1)(d)(v) of the Service Tax Rules, 1994 under the category of transport of goods by road service. With regard to transportation of household goods, the appellant is engaged by corporate/Government organisations/other authorities for shifting of household goods of their employees or by the individuals themselves, wherein t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rming the adjudged demand. In interpreting the scope of the activities undertaken by the appellant, the ld. Adjudicating authority has held that though transportation of goods is indispensible, but the essential characteristic of service is to provide safety of the goods by adopting the means of packing, unpacking, loading and unloading, and thus, the services provided merit classification under the category of 'Cargo Handling Service'. Feeling aggrieved with the impugned order, the appellant has filed the appeal before this Tribunal. 3. The ld. Advocate appearing for the appellant submitted that the essential character of the service provided remains only of transportation of goods from one location to another and other activities lik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Handling Service'. 5. Heard both sides and examined the case records. 6. Section 65 (50b) of the Finance Act, 1994 qualifies a person to be a 'Goods Transport Agency', if he issues the consignment notes in relation to transportation of goods. Further, Section 65 (23) ibid defines 'Cargo Handling Service' to mean, loading, unloading, packing or unpacking of cargo and includes within its ambit the service of packing together with transportation of cargo or goods. The said definition excludes mere transportation of goods from its purview. On examination of the said definition clause, it reveals that if the primary objective is to provide the services of loading, unloading, packing or unpacking of goods and the service of transportation is on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other goods from one place to the other. It is a matter of fact that the customers never approach the appellant only for loading, unloading, packing or unpacking of goods. Rather, the request comes only when they want to shift the goods from one place to other. Considering the sensitive nature of the goods being transported, the appellant also undertakes other activities of packing etc., if so desired by its customers, which are optional. Thus, the modus operandi adopted by the appellant transpires that the principal aim and objective is for transportation of goods and providing of other services are incidental and ancillary to the main purpose of transportation. 9. Applying the common parlance test enunciated by the judicial forums and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... simply brushed aside the above circulars by placing reliance on the circular dated 20.02.2008 issued by CBEC, which is contextually different than the case in hand. On careful examination of the contents of circular dated 06.08.2008 and 05.10.2015, it transpires that the clarifications furnished there under by the CBEC, the apex body, are in conformity with the provisions of Section 65 A ibid. In this context, the law is well settled that the circular issued by the Board, either in its administrative or executive jurisdiction, are binding on the officers working under it, unless and until it is proved that the clarifications furnished are contrary to the statutory provisions or the law pronounced by the higher judicial forums. We find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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