Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 587 - AT - Service TaxClassification of service - Cargo Handling Services - process right from mine stage to formation of limestone gitties - composite services - essential character - Whether activities of the appellants fall under taxable services of Cargo Handling Service as defined under Section 65(23) of the service Act prior to 10.09.2004 - Held that:- appellants are engaged in various activities. Whenever a composite service consisting of different services which cannot be classified in clause 2(a) of Section 65A, services are to be classified as service which gives them essential character of service as per clause 2(b) of Section 65A. We note that Cargo Handling Services does not give essential character of activities of the appellants. We therefore hold that activities of the appellants prior to 10.09.2004 do not fall under Cargo Handling Service as defined under Section 65 (23) of the Act as loading/unloading are only incidental and not the main activity of the appellants - Decided in favour of assessee. Classification of service - Whether activities of the appellants are classifiable under Business Auxiliary Services with effect from 10.09.2004 - Held that:- The activities undertaken include, sorting, grading pre-screening, screening and crushing of limestone of various sizes. These activities are more in the nature of processing of raw and crude limestone to Low silica limestone gitties of desired sizes. We are therefore of the view that these activities more appropriately can be termed as processing activities and not production of goods. Since processing has been added in the defined of Business Auxiliary Services with effect from 16.06.2005, we hold these activities are classifiable as Business Auxiliary Services with effect from 16.06.2005 only - Decided in favour of assessee.
|