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2019 (4) TMI 812 - CESTAT NEW DELHIClassification of services - Cargo Handling Services or Goods Transport Agency Services? - Hiring of Pay Loader and Tippers for Loading and transporting of coal - Held that:- The work of loading and unloading is incidental to “transportation’, which has also been clarified by Circular dated 6 August, 2008 issued by Government of India, Ministry of Finance, Department of Revenue in regard to Service tax levy on goods transport by road services. Composite service may include various intermediary and ancillary services such as loading/ unloading, packing / unpacking etc. provided in the course of transportation of goods by road. These services are not provided as independent activity but as means of successful implementation of the principal service, namely the transportation of goods by road. It has, therefore, been clarified that a composite service even if it consists of more than one service, should be treated as a single service based on the main or principal service. It has, therefore, been held that any ancillary / intermediate service provided in relation to transportation of goods, and the charges, if any, for such services are included in the invoice issued by the Goods and Transport Agency and not by any other person. Such service would form part of Goods and Transport Agency Service and , therefore, the abatement of 75% would be available on it. Whether in the present case transportation is the main service and loading / unloading is ancillary service provided for successful completion of the main service? - Held that:- The cost of transportation charge is ₹ 41.65 per ton of limestone quantity delivered at a distance of 10.5 km. It is apparent that the essential feature of the service is transportation. Loading and unloading are ancillary / intermediate service provided in relation to transportation of goods, and such service would be Goods and Transport Agency Service. It cannot be ‘Cargo Handling service’ as was found by the Commissioner. It has been held by the Supreme Court in COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, RAIPUR VERSUS SINGH TRANSPORTERS [2017 (7) TMI 494 - SUPREME COURT] that transportation of coal from the pit-heads to the railway sidings within the mining area is more appropriately classified under the heading ‘Transportation of Goods by road service’. Appeal allowed - decided in favor of appellant.
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