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TMI Blog2017 (7) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... andling Agents for Resham Singh and Co. Pvt. Ltd. and that tax liability of Rs. 12,02,004/- with interest thereon is required to be recovered from them for the period 2003-04. In adjudication proceedings, the said tax liability was confirmed along with interest and penalties imposed on appellant under Section 76 & 78 of the Finance Act, 1994. In confirming such liability, adjudicating authority held that appellant was providing cargo handling service, since they were involved in (a) Transportation of cargo from the Tuticorin harbour to the new yard (stock yard) which is 6 km away from the port (b) Storage, security, loading, unloading at yard (c) Arranging for escort and private labourers to clear the electric wire during the transportation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal has been filed by the department against the said order. In the circumstances, Ld. Advocate prays that appeal may be allowed in their favour. 3. On the other hand, on behalf of the Department, Ld. A.R Shri A.Cletus (ADC) supports the adjudication. He submits that the activities carried out by appellants are in the nature of cargo handling agency, hence charges collected by them from M/s. Resham Singh and Co. Pvt. Ltd. will consist of (i) freight charges (ii) warehousing and storage charges and (iii) cargo handling charges. The essential character of the activity carried out by appellant is cargo handling only and hence there is no merit in the submissions of the appellant. 4. Heard both sides and have gone through the facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transportation is only incidental to the cargo handling service and not the primary activity. On the other hand, the activities sought to be taxed in cargo handling service is that those of packing, unpacking, loading and unloading of goods. The circular further clarifies that mere transportation of goods is not covered in the category of 'cargo handling' and is therefore not liable to service tax. 5.4 We further find that pursuant to representation to the Government regarding difficulties being faced by Goods Transport Agency, clarifications were issued by CBEC in circular dt. 06.08.2008 referred to by ld. advocate (supra). In para-3 thereof, with regard to GTA service, whether said service may include various intermediary and an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fy the essential features of the transaction. The method of invoicing does not alter the single composite nature of the service and classification in such cases are based on essential character by applying the principle of classification enumerated in section 65A. Thus, if any ancillary/ intermediate service is provided in relation to transportation of goods, and the charges, if any, for such services are included in the invoice issued by the GTA, and not by any other person, such service would form part of GTA service and, therefore, the abatement of 75% would be available on it." In para-4, the Board further clarified that in cargo handling service "transportation" is not the essential character of cargo handling service but only inciden ..... X X X X Extracts X X X X X X X X Extracts X X X X
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