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TMI Blog2019 (5) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... o handling service in which the transportation of goods is also an ancillary activity, can be vivisected into transportation service and other services, such as loading and unloading of the goods, in this case agricultural produce. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 50243 of 2015 - Final Order No. 50600/2019 - Dated:- 2-4-2019 - MR. JUSTICE DILIP GUPTA, PRESIDENT And MR. BIJAY KUMAR, MEMBER (TECHNICAL) Shri S.C., Kamra, Advocate And Shri N.D. Dube, Advocate - for the appellant Shri G.R. Singh, DR - for the respondent ORDER Per Bijay Kumar : The appellant, M/s Central Warehousing Corporation, Bhopal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) arranges unloading of material from wagons through manual labour and stack the foodgrain bags on the railway platform; (iii) arranges to load the bags into trucks. The truck may either be owned by the H T contractor or arranged by him from an independent GTA; (iv) arranges transportation of material from Rail Head upto CWC s warehouse. No consignment note/GR is issued by the H T contractor; (v) arranges unloading of material from truck at CWC s warehouse and stacks the same inside the warehouse; (vi) performs repeat operations, as and when the material is despatched from the warehouse on the instructions from the depositor (FCI), viz., destacking of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith 15% mark up. Further, also the Commissioner, Central Excise, Bhopal by the Order-in-Original No. 21-25/Commr/ST/BPL-I/2013 dated 28.6.2013 upheld that services of handling and transportation of goods by H T Contractor engaged by CWC was correctly classifiable under cargo handling service and, therefore, dropped the entire proceeding initiated by Revenue demanding service tax under business auxiliary service category. This order was not appealed by the Department and attained the finality. 5. The cargo handling service became liable to service tax under the Finance Act with effect from 16.8.2002, vide Finance Act, 2002. The Board further clarified that if the storage and warehouse keeper undertakes cargo hand ling ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) South Eastern Coalfields Ltd. Vs. CCE, Raipur 2017 (47) STR 93 (Tri.-Del.); (iv) Ultra Tech Cement Ltd. Vs. CCE, Kolhapur 2018 (10) GSTL 80 (Tri.-Mum). 5.2 The appellant further submits that handling and transport services are composite in nature and bundled services as the services of loading and unloading of cargo cannot be undertaken without transportation of the cargo from one place to another. The appellant has transported the goods from railway to CWC warehouse for a short distance to 5-6 KM, which is incidental to the principal supply of cargo handling service. Reliance has been placed to this effect on the CBEC letter No. 334/4/2006-TRU dated 28.2.2006 wherein it has been clarif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one for host of the activities namely: (a) Handling of goods at rail head (loading/unloading, stacking at the platform etc. (b) Transportation of goods from rail head to the warehouses. (c) Handling of goods at warehouse (unloading, stacking them inside the godown in the manner as prescribed). (d) Other services such as physical verification, weighment rebagging, supply of casual labour etc. We find that this issue stands settled in favour of the appellant vide order of Hon ble Tribunal in the case of Karnataka State Warehousing Corporation, wherein para 9, it is held as under: 9. As regards the question of arranging loading and unload ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing service tax under GST category on the RCM basis. We also find that in this case the CBEC itself vide their Circular dated 8.1.2002 has clarified that for storage, warehousing keeper is required to pay tax under the category of cargo handling services only. We also find that in this case H T contractor has not issued any consignment note to the appellant and, therefore, would not be covered as Goods Transport Service (GTA) which has been held in the various decisions of Hon ble Tribunal in the cases mentioned at para-4.1 above. Accordingly, it cannot be held that providing the cargo handling service in which the transportation of goods is also an ancillary activity, can be vivisected into transportation service and other services, such a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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