2023 (3) TMI 444 - AT - Service Tax

Classification of services - Cargo Handling Service - Clearing and Forwarding Agency Service - Stevedoring Service - Customs House Agency Service - value of the services calculated separately under the appropriate categories for levy of duty - services rendered on a turnkey basis under the CHA category - Show Cause Notice issued was time-barred under the normal time period - allegation of suppression of fact etc. for issue the Show Cause Notice under the extended time limit - liability to pay interest and penalties.

HELD THAT:- The clarification in C.B.E.C. vide circular F. No. B43/1/97-TRU dated 06/06/1997 with reference to the CHA service covers a gamut of service activity which could when rendered individually be covered under other specific service categories. However, when the whole range of activity is performed by a CHA in relation to the entry or departure of conveyance or the import or export of goods, it will be covered under CHA Service and Service Tax is to be computed only on the gross service charges, by whatever head / nomenclature billed by the CHA to his client. This clarification is squarely applicable in the case of the CHA services provided by ASPIN to their clients, in relation to the entry or departure of conveyances or the import or export of goods.

The services rendered by ASPIN on turnkey basis during the period under appeal would fall under the category of CHA Services and the value of taxable service has to be computed in the manner stated at paragraph 2.5 of the C.B.E.C. Circular dated 06.06.1997 above.

Having decided the matter of classification and valuation on merits in favour of the appellant, the issues relating to interest and fines do not survive - Appeal allowed.