TMI Blog2019 (3) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant for this activity. The purchase order clearly shows that the contract was for supply of material and can by no stretch of imagination, be considered as for providing Cargo Handling Service - no service tax is payable for this activity under the category of Cargo Handling Service - demand set aside. Appropriation of Service Tax amount of ₹ 31,30,180/- - Held that:- The Consultant for the appellant has submitted that this amount is incorrect and that appellant has totally paid a sum of ₹ 34,37,399/-. The adjudicating authority is directed to verify this fact and correct his record. It is seen from the record that the appellant has already discharged the service tax as admitted by them under the category of Commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the show cause notice demand for service tax was raised as follows: (1) Commercial or Industrial Construction Service, the total demand for service tax : ₹ 17,64,057/- (2) Cargo Handling service (towards supply of sand): ₹ 40,27,357/- (3) Cargo Handling service (Transport of Limestone): ₹ 32,86,411/- (4) Supply of tangible goods ₹ 10,92,480/- 3. The adjudicating authority, after considering the submissions made by the appellant, passed the impugned order in original dated 12.3.2013 in which, he dropped the Service Tax demand for an amount of ₹ 20,60,000/-, which was made in the show cause notice as a result of a typographical error in the calculations. However, the balance service tax deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection, he submitted that demand is not justified under the category. (3) An amount of ₹ 32,86,411/- has been demanded under the category of Cargo Handling Service which was towards transportation of limestone from Sanu mines to GLPL Barmer. He argued that the contracts were for mere transportation of these goods and cannot be categorized under Cargo Handling Service. He further submitted that liability for such activity will fall under Goods Transport Agency Service which has already been discharged by the appellant after availing the abatement at the rate of 75% in terms of relevant Notification. Further, in this connection, he submitted that an error has been committed by the adjudicating authority in the amount of service tax o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e type of orders were executed for supply of materials such as river sand and crusher grit. We have perused some of the purchase orders received by the appellant for this activity. The purchase order clearly shows that the contract was for supply of material and can by no stretch of imagination, be considered as for providing Cargo Handling Service. Hence, no service tax is payable for this activity under the category of Cargo Handling Service. We set aside the demand made under this category for a total amount of ₹ 40,27,357/- . 13. The demand amounting to ₹ 32,86,411 has also been made under the category of Cargo Handling Service for the activity covered by the second set of contracts. A perusal of some of the contracts exe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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