9911796707
TMI Blog2025 (1) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. The Appellant is to provide transportation service and it invoices its customer for transportation service. Hence, the Revenue has failed to provide arny reason in support of its averment that the service is that of 'logistics' and it would be liable for service tax under the classification of business support service . Moreover, under the provisions of section 65A of the Finance Act, 1994 specific description is always preferred over general description. If the Appellant being an ICD has provided service of transportation by road, it cannot be classified under any other entry. The law does not authorize such classification. For providing transportation service, the liability cannot be fixed otherwise than on the recipient the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of import cargo was made liable under service tax. It is the case of the Revenue that besides CHS, the service provider was also arranging logistics for transporting the import and export cargo for which, an additional amount was collected, which was alleged to be higher than the actual cost of transportation from CHA. The said additional amount so collected by the service provider was noticed to be reflected in the P L Account of the service provider under the heading Transportation income . 2. This activity of providing or managing logistics was felt to be covered under Business Support Service (BSS) under Section 65(104c) of the Finance Act, 1944 and accordingly, a SCN was issued wherein, it was inter-alia proposed to recover the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t/transportation charges accordingly. From the balance sheet of the service provider, it was also noticed that freight/transportation charges were collected by the service provider, which was being paid as freight charges for the transport of goods from/to various destinations. 6. It was thus believed that the nature of service provided by the assessee was under the category of CHS alone. Hence, it was observed that the service provider had rendered a composite service, the major service being CHS and the logistics involved in transportation of cargo was only an ancillary service. It was also recorded that insofar as the logistic support was concerned, the same involved transportation of cargo to the Gateway ports, the transportation charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p) 65(50a), the liability in terms of Rule 2(1)(d)(v) ibid on the consignor or consignee of the services, as the case may be. It is further argued that they provide transportation services to their clients through outsourced agencies; when the services of CHS for export is provided, the liability to service tax does not arise at all. With the enactment of BSS with effect from 01.01.2005, the onus of payment of service tax is on the recipient of this service. Admittedly, the service provider being only an ICD had transported either loaded containers or empty containers, the recipients of such services were the corporate bodies or firms and as such, the liability to service tax would always be on them. 8. Without prejudice to the above, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act, 1994 specific description is always preferred over general description. If the Appellant being an ICD has provided service of transportation by road, it cannot be classified under any other entry. The law does not authorize such classification. For providing transportation service, the liability cannot be fixed otherwise than on the recipient thereof in terms of Rule 2(1)(d)(v) of the Service Tax Rules, 1994. 10. Apart from the above we find that the period of dispute is from 2007-08 to 2011-12 and Show Cause Notices came to be issued on 19.10.2011 and 10.10.2012 invoking the extended period of limitation. We understand from the facts borne on record that the appellant being an ICD had admitted its liability under the specific clas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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