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2019 (10) TMI 1400 - CESTAT MUMBAINon-discharge of tax liability - terminal handling charges - Circular No. B11/2/2002-TRU, dated 1st August, 2002 of Central Board of Excise & Customs - HELD THAT:- It is an admitted fact that the respondent is a shipping line that is engaged in transportation of goods for which ‘bills of lading’ are issued. In that capacity, they are required to ensure delivery of cargo at the intended destination, whether it is port of discharge, an inland container facility or at the door of the consignee, and handling of goods/containers is inextricably involved in such activity. Though the service may be end-to-end, the goods belong to the shipper/consignee, according to the terms of contract of sale, and, hence, any charges that devolve during the course of such transportation must be home by the owner. The shipping line is concerned with safe delivery to the intended consignee. The charges levied by the port authorities, in the form of ’terminal handling charges’ and ‘detention charges’, rightfully are to be billed to the owner and, to the extent of facilitation by the shipping line, is claimable as reimbursement. Furthermore, ‘terminal handling charges’ have already been subject to levy under Finance Act, 1994 and, hence, is not chargeable again unless included, as ‘input service’, in the assessable value of ‘output service’ which it is not. Therefore, on the ground of respondent not being the provider of service, as specified in the taxable entry, and the nature of the charges reimbursed by the customer, the inclusion thereof in the assessable value would not be in accordance with law. Appeal dismissed - decided against Revenue.
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