TMI Blog2019 (4) TMI 1691X X X X Extracts X X X X X X X X Extracts X X X X ..... YADAV VERSUS CCE, CHANDIGARH-II [ 2015 (12) TMI 327 - CESTAT NEW DELHI] . Since the entire agreement was for movement of goods within the factory, we find that there is no evidence that the appellant has actually handled cargo outside the factory of the manufacturer. They have indeed handled material and movement of material within the factory does not amount to cargo handling and it is only material handling. Therefore, no service can be charged - impugned order needs to be set aside. Appeal allowed - decided in favor of appellant. - Appeal No. ST/867/2009 - A/30395/2019 - Dated:- 20-2-2019 - Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical) None for the Appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cargo handling service. A show cause notice dated 17.4.2008 was issued to the appellant calling upon them to explain: (a) Why the services rendered by them should not be classified as cargo handling services instead of business auxiliary service and (b) Differential duty along with interest should be collected from them (c) Penalties under Sec.76,77, 78 of the Finance Act, 1994 should not be imposed on them. 5. The impugned order confirmed the demand and interest and imposed penalties as proposed. Hence this appeal on following grounds: (i) The entire movement of their activities was within the factory of manufacturer and there is no evidence that they have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory of the manufacturer and into their godown. It has been held by the Hon ble Apex Court in the case of Sushil and Company [2016 (42) STR 625 (SC)] that for an activity to be charged as cargo handling service, the goods in question must be cargo in the first place and the following conditions have to be satisfied. (a) There must be cargo i.e., packed or unpacked commodity accepted by a transporter or carrier for carrying the same from one destination to another. It is only after the commodity becomes cargo, its loading and unloading at freight terminal for being transported by any means may become cargo handling service if it is provided by an independent agency; and (b) Services provided must indepen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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