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TMI Blog2017 (11) TMI 1107X X X X Extracts X X X X X X X X Extracts X X X X ..... actured goods for onward transportation. Prior to the amendment made by the Finance Act of 2005 with effect from 16.06.2005, the appellant would not be liable to pay service tax on the service rendered by it in terms of Section 65(23) read with Section 105(zr) of the Act. The demand of Service Tax on the assessee-Appellants for the relevant period will not arise - appeal allowed - decided in favor of appellant-assessee. - Service Tax Appeal Nos.142, 143 & 107 of 2006 - ST/A/57323-57325/2017-CU[DB] - Dated:- 13-10-2017 - Mr. (Dr.) Satish Chandra, President And Mr. B. Ravichandran, Member (Technical) (Rep by Sh. Rachit Jain, Adv.) for the Appellant (Rep. by Sh Sanjay Jain, DR) for the Respondent ORDER Per: B. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Revenue, are in appeal. 4. The learned counsel for the assessee-Appellants submitted that they have undertaken only packing activities in terms of contract, in the premises of their client, M/s BSP, Bhilai. This cannot be considered as taxable activity under Cargo Handling Services‟ in view of the statutory scope of the said service. He drew our attention to the recent decision of the Hon ble Supreme Court in the assessee-Appellants own case (now known as Signode India Ltd. 2017-TIOL-126-SC-ST). 5. The learned DR for the Revenue reiterated the grounds of appeal regarding the grievance of the assessee-Appellants against allowing cum-tax valuation as well as dropping of demand for the extended period by the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods including pouch filling, bottling, labelling or imprinting of the package, but does not include any packaging activity that amounts to manufacture within the meaning of clause (f) of Section 2 of the Central Excise Act, 1944. Section 105 - taxable service means any service provided or to be provided:- (zr) to any person, by a cargo handling agency in relation to cargo handling services; (zzzf) to any person, by any other person, in relation to packaging activity. 6. Sections 65(76b) and 65(105)(zzzf) were both inserted by the Finance Act, 2005 with effect from 16.06.2005. The above amendment, to our mind, is sufficiently indicative of legislative intent that packaging activity is different from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defined to mean Packaging of Goods . 9. The distinction between the two expressions, namely, cargo and goods in the two different provisions of the Act becomes evident if cargo is understood to denote goods which are ready for transportation whereas packaging of goods is a stage prior i.e. before they became cargo and in fact on completion of such packaging the goods become cargo. The position becomes more clear if the dictionary meaning of the word cargo is taken into account, as set out below: As per Black' Law Dictionary, the word cargo means Goods transported by a vessel, airplane, or vehicle; According to Oxford Dictionary of English, cargo means goods carried on a ship, aircraft, or motorvehicle and as per Web ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services provided by Cargo handling agencies undertaking the activities of packing, unpacking, loading and unloading of goods meant to be transported by any means of transportation, namely truck, rail, ship or aircraft as services liable to tax as cargo handling services . 13. Clause 3.2 of the circular makes it clear that mere transportation of goods is not covered in the category of cargo handling. Clause 15 of the circular also makes it clear that an individual undertaking the activity of loading or unloading the cargo would not be liable to pay service tax on such activity as being an activity undertaken by a cargo handling agency. 14. It is nobody's case before us that the appellant is a cargo handling agen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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