2022 (4) TMI 370

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..... tegory on the ground that the activity of transportation of the minerals from the stock yard to the railway siding, qualifies under the category of "cargo handling services". The authorities below have held that the Appellant has provided cargo handling services in terms of Section 65(23) read with Section 65(105)(zr) of Finance Act, 1994 and hence have demanded service tax on the gross amount received by the Appellant on the activity as stated above. It is the contention of the Appellant that the work undertaken by them does not fall under the category of "cargo handling services". They have also stated that the recipient of services had examined the activities undertaken under the contract and had paid service tax under reverse charge mec .....

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..... ellant calls for taxation under the cargo handling services and they cannot bifurcate the contract into transport and loading separately to not pay service tax on transportation activity. In such situation, the original authority is correct in holding the appellant to tax liability under "cargo handling service". It is further submitted that the responsibility of the appellant gets discharged only after completion of loading of limestone onto the railway wagons. Further, he reiterated the order in original and the order in appeal and submitted that the demand has been rightly confirmed by the authorities. 4. Heard both sides through video conferencing and perused the appeal records. 5. The statutory definition of "cargo handling service" .....

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..... ansportation service. When there is composite service, the service should be classified as per provisions in Section 65A of Finance Act, 1994. As per this section the sub-clause which gives the most specific description is to be adopted. If this criterion fails then the service is to be classified as the service which gives the essential character of the service. The composite service has elements fitting into the definitions of both the services. So, recourses is to be taken to section 65A(2)(b). Here it cannot be considered that transportation is for the purpose of loading and unloading but the contrary is true. That is loading and unloading is for transportation. Any person dealing with the situation perceives the services as one for tra .....

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