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TMI Blog2025 (1) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... ice. This Bench in the case of M/S MAA KALIKA TRANSPORT PRIVATE LIMITED VERSUS COMMISSIONER OF CGST CENTRAL EXCISE, ROURKELA, ROURKELA [ 2023 (7) TMI 435 - CESTAT KOLKATA] has gone through a similar issue and has held ' We observe that the contract is a composite contract primarily for the purpose of transportation of coal beyond 180 to 200 KM. The activities like loading, unloading, obtaining delivery orders etc. are incidental or ancillary to the transportation service. The contract has not provided any separate charges for these activities. The composite contract cannot be vivisected to arrive at the value of service for each activity artificially.' It is found that for the period from 2010-11 to 2011-12, the Ld. Commissioner (Appeals) has got the documents verified and has found that the goods in question were actually exported by M/s. Rungta Mines Ltd. Accordingly, he has set aside the demands for the said period - the confirmed demand does not survive. Time limitation - HELD THAT:- There are substantial force in the appellant s claim that the confirmed demand for the extended period is hit by time-bar. The appellant is duly registered with the Service Tax Department a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, the appellant is before the Tribunal. 3. The Ld. Counsel appearing on behalf of the appellant submits that the appellant has been given contracts by M/s. Rungta Mines Ltd. towards loading and shifting wherein the rate is given per metric tonne. He submits that apart from this, they are also given a contract to transport the iron ore from Ghatkuri Mines to other places, for which the rate is fixed on per metric tonne basis. He submits that loading, unloading, shifting, transportation, etc. are part of the entire contract and unless all these activities are taken up together, the appellant is not given the requisite consideration; only for the sake of convenience the separate rates have been fixed towards loading, unloading, shifting, transportation, etc. He therefore contends that the entire activity has to be taken as part of a single contract. 3.1. He submits that if the same is taken as a single contract, then the major portion would be towards transportation of the goods, with loading, shifting and unloading being only a part of the main service viz. goods transportation service. It is his submission that the activity of transportation incidental with loading and unloading c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the intent to evade payment of Service Tax would not arise. Being of the view that no Service Tax is payable, the appellant has neither charged Service Tax on their client nor paid the same to the Revenue. No evidence has been brought in by the Revenue to the effect that they had charged Service Tax and retained the same. The Ld. Counsel for the appellant therefore submits that this shows the bona fide belief of the appellant that they are not required to pay Service Tax under the category of cargo handling service . 3.5.1. In view of these submissions, he prays that the confirmed demand for the extended period may be set aside on account of time-bar also. 4. The Ld. Authorized Representative of the Revenue reiterates the findings of the ld. adjudicating authority. He points out that it is not a case of composite contract wherein the appellant is providing GTA service with incidental handling and/or loading and unloading of the cargo; Separate contracts have been given by M/s. Rungta Mines Ltd. towards loading, shifting and transportation. Accordingly, he justifies the confirmed demand. 4.1. He further submits that only on account of the detailed verification conducted by the audi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... using. For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In such a case, whether the intermediary or ancillary activities is to be treated as part of GTA service and the abatement should be extended to the charges for such intermediary or ancillary service? Clarification : GTA provides a service in relation to transportation of goods by road which is a single composite service. GTA also issues consignment note. The composite service may include various intermediate and ancillary services provided in relation to the principal service of the road transport of goods. Such intermediate and ancillary services may include services like loading/unloading, packing/unpacking, transshipment, temporary warehousing etc., which are provided in the course of transportation by road. These services are not provided as independent activities but are the means for successful provision of the principal service, namely, the transportation of goods by road. The contention that a single composite service should not be broken into its components and classified as separate serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even if it consists of more than one service, should be treated as a single service based on the main or principal service. While taking a view, both the form and substance of the transaction are to be taken into account. The guiding principle is to identify the essential features of the transaction. The interpretation of specified descriptions of services in such cases shall be based on the principle of interpretation enumerated in Section 66F of the Finance Act, 1994. Thus, if ancillary services are provided in the course of transportation of goods by road and the charges for such services are included in the invoice issued by the GTA, and not by any other person, such services would form part of GTA service and, therefore, the abatement of 70%, presently applicable to GTA service, would be available on it. 16. The clarifications cited above clearly establishes that when a contract is entered for a composite contract for transportation service including various intermediate or ancillary services provided in relation to the principal service of road transport of goods like loading/unloading, packing/unpacking, transshipment, warehousing etc., which are provided in the course of tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mands for the said period. 9. We also find that the appellant has provided the certificates issued by a Chartered Accountant to the effect that the services were rendered in respect of transportation charges and wagon loading for export cargo. One such sample certificate is reproduced below: - We find that even on this count, the confirmed demand does not survive. 10. In view of the foregoing, we set aside the impugned order and allow the appeal on merits. 11. We find substantial force in the appellant s claim that the confirmed demand for the extended period is hit by time-bar. The appellant is duly registered with the Service Tax Department and admittedly, have been paying Service Tax as well as filing their S.T.-3 Returns. Even the data towards turnover on account of these activities has come to light only on the basis of the Income Tax Returns and P L Account maintained by the appellant. This shows that there has been no attempt on the part of the appellant to suppress any fact. We also find that the appellant has not even charged Service Tax on their client, as has been noted in paragraph 1.2 of the impugned Order-in-Original, which reads as under: - 1.2 In course of audit of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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