Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 662 - CESTAT AHMEDABADBenefit of exemption - handling of agriculture produce by a cargo handling agency - Classification of services - Port Service or cargo handling service? - case of appellant is that the service under the category of “port service” also include the service of “cargo handling service” and since the service provided by them was a cargo handling service - availability of benefit of service tax exemption under notification 10/2002-ST dated 01.08.2002 - HELD THAT:- It is an admitted fact that the noticee has rendered services of supervision over internal shifting of cargo within port area, loading, unloading of cargo and reporting thereof. These services would have been covered under the category of “cargo handling service” if provided outside the port area and therefore it can be construed that the appellant are a cargo handling agency which provide “port services” to M/S Mundra Port and Special Economic Zone Ltd, Mundra. Thus, in the facts of the case it can be safely concluded that the appellant is a cargo handling agency providing cargo handling service within the port area with authorisation from M/S Mundra Port and Special Economic Zone Ltd, Mundra i.e. “a port” but by virtue of definition of port services under Section 65(82) read with Section 65(105)(zn) of the Act, they are classified as “port service” and not “cargo handling service”. It has also been clarified by CBEC vide Circular No. B/11/1/2002-ST, dated 01.08.2002 - the circular states that "Cargo handling services are provided in the port also. Whether such service will be covered in the category of port services or cargo handling service? In this context it may be mentioned that port services cover any service provided in relation to goods or vessels by a port or a person authorized by the port. This includes the cargo handling service provided within the port premises. Therefore, to this extent there may be an overlap in cargo handling service and the port service. However, since port services cover all the services in relation to goods and vessels and therefore more specific to port, the service provided in a port in relation to handling of goods would be appropriately covered under port service and no separate levy will be attracted under the category of cargo handling agency service. Similar would be the case in respect of service provided for storage of goods in the port premises". On carefully reading the notification no. 10/2002-ST dated 01.08.2002, it is found that the exemption is provided to handling of agriculture produce by a cargo handling agency and it is not service specific whether for “cargo handling service” or for “port service”. Cargo handling agency can undertake handling of agriculture produce within or outside port. Thus, the appellant were eligible for the benefit of the notification no. 10/2002-ST dated 01.08.2002. Case remanded back the case to the original adjudicating authority to re-determine the demand and decide the case afresh after allowing the benefit of notification no. 10/2002-ST dated 01.08.2002 to the appellant - appeal allowed by way of remand.
|