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TMI Blog2023 (3) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... 997 with reference to the CHA service covers a gamut of service activity which could when rendered individually be covered under other specific service categories. However, when the whole range of activity is performed by a CHA in relation to the entry or departure of conveyance or the import or export of goods, it will be covered under CHA Service and Service Tax is to be computed only on the gross service charges, by whatever head / nomenclature billed by the CHA to his client. This clarification is squarely applicable in the case of the CHA services provided by ASPIN to their clients, in relation to the entry or departure of conveyances or the import or export of goods. The services rendered by ASPIN on turnkey basis during the perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice Tax and Education Cess totally amounting to Rs.1,40,87,194/- for the periods 2004-05, 2005-06 2006-07. It was alleged in the Show Cause Notice, dated 20/10/2009, issued to the appellant that they have not classified the services rendered by them under the appropriate categories. They had allegedly suppressed their income from Clearing and Forwarding Services and from Cargo Handling Services and shown only a portion of the CHA service income in the ST-3 returns while availing ineligible abatements, exemptions and deductions from the assessable value. The lower authority vide the impugned order has confirmed duty along with interest and also imposed penalties under various Sections of the Act. 4. The Learned Counsel for the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant s own case i.e. Aspinwall Co. Ltd. Vs. CCE, Mangalore reported in 2011 (21) STR 257 (Tri. Bang.) and again in Aspinwall Co. Ltd. Vs. CCE, Cochin reported in 2017 (5) TMI 149 (CESTAT Bang.) held that services rendered as turkey contracts by them are not classifiable under port services and Service Tax paid under Custom House Agents Service was upheld. He informed supra, that the second judgment with reference to their Cochin establishment was upheld by the Hon ble Supreme Court in Civil Appeal No. 10763/2017 dated 11/01/2023. Further in the case of their sub-contractors, the value of services provided by the sub-contractors has been included in the bills prepared by ASPIN on their clients and had suffered service tax. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order. 6. We find that the major issues for consideration are: - (i) Whether the services provided by ASPIN has to be separately classified under Cargo Handling Service , Clearing and Forwarding Agency Service , Stevedoring Service and Customs House Agency Service with the value of the services calculated separately under the appropriate categories for levy of duty, or whether the services were classifiable under CHA service as claimed by the appellant for the services rendered on a turnkey basis under the CHA category, and the value of the taxable service determined in terms of C.B.E.C. Circular dated 06.06.1997. (ii) Whether the Show Cause Notice issued was time-barred under the normal time period or whether it was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be covered under CHA Service and Service Tax is to be computed only on the gross service charges, by whatever head / nomenclature billed by the CHA to his client. This clarification is squarely applicable in the case of the CHA services provided by ASPIN to their clients, in relation to the entry or departure of conveyances or the import or export of goods. It has been further clarified at para 2.5 of the said circular that when a CHA undertakes turnkey projects the value of taxable service shall be 15% of the lumpsum amount charged to the client. The CHA is required to show the service charge as 15% of such lumpsum amount of the bills and Service Tax of 5% will be chargeable on the said 15%. Para 2.5 of the circular is reproduced be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum amounts including the Agency Commission, will have the option of paying service tax by considering 15% of such lumpsum amount as service charges. The appellant has been paying service tax on such Turnkey contracts on 15% of the overall lumpsum amounts received. Revenue noticed in a few cases, that even though the contract with the clients were on lumpsum basis, the appellant was billing various items of charge individually in the invoices. Accordingly, Revenue has taken the view that the benefit of the 1997 Circular will not be allowable to the appellant, since, the appellant is showing the items separately. The claim of the appellant is that in a typical Turnkey Contract , wherein the total amount received is to Rs. 388 per MT, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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