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2017 (3) TMI 934 - SC - Service TaxClassification of services - whether the service rendered by the appellant amounts to “cargo handling service” within the meaning of Section 2(23) of the Finance Act, 1994 or the "packaging activity"? - Held that: - A careful reading of Section 65(23) of the Act, which defines Cargo Handling Service would go to show that though the word packing is included therein, the same is referable to the word “Cargo” whereas in Section 65(76b) “Packing Activity” is defined to mean “Packaging of Goods” - the appellant has nothing to do with the transportation of goods which it packs within the factory unit of the principal manufacturer prior to the goods leaving the factory. It is nobody's case before us that the appellant is a cargo handling agency. All activity undertaken by the appellant, though related to packing activity, is at a stage when the goods are yet to clear the factory gate as manufactured goods for onward transportation. Prior to the amendment made by the Finance Act of 2005 with effect from 16.06.2005, the appellant would not be liable to pay service tax on the service rendered by it in terms of Section 65(23) read with Section 105(zr) of the Act. Appeal allowed - decided in favor of appellant.
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