9911796707
TMI Blog2019 (10) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is engaged in the activity of loading, transport and unloading of cargo through road, Rail (containers), Road-cum-Rail to different service receivers under composite contracts and accordingly issued a show cause notice dated 22.10.2009 proposing to demand Rs. 1,99,46,117/- being the service tax including Cesses for the period 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09, apart from applicable interest and penalty. In adjudication, the original authority - Commissioner vide Order-in-Original 29.08.2011, interalia, upheld the proposed demand, however to the extent of Rs. 1,72,74,961/-, appropriated the amount already paid and also charged applicable interest along with the applicable penalty. Ld. Commissioner passed order after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. We have heard the rival contentions and perused the records and Section 65(23) of the Finance Act, 1994 "Cargo Handling Service" to mean "loading, unloading, packing or unpacking of cargo and includes cargo handling services provided for freight in special containers or for non-containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport and cargo handling service incidental to freight, but does not include handling of export cargo or passenger baggage or mere transportation of goods." Section 65(105)(zr) defines "Taxable service" means any service provided or to be provided to any person, by a cargo handling agency in relation to cargo handling services." Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te that Board vide Circular No. 104/7/2008-ST, dated 06.08.2008, the following clarifications were issued. "Issue: GTA provides service to a person in relation to transportation of goods by road in a goods carriage. The service provided is a single composite service which may include various intermediary and ancillary services such as loading/unloading, packing/unpacking, transshipment, temporary warehousing. For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In such a case, whether the intermediary or ancillary activities is to be treated as part of GTA service and the abatement should be extended to the charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assification in such cases are based on essential character by applying the principle of classification enumerated in section 65 A. 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." Later on, vide another clarification dated 05.10.2015, the matter was further clarified, in the following manner : "Goods Transport Agency (GTA) has been defined to mean any person who provides service to a person in relation to transport of goods by road and issues consignment note, by what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of transportation of goods by road and the charges for such services are included in the invoice issued by the GTA, and not by any other person, such services would form part of GTA service and, therefore, the abatement of 70%, presently applicable to GTA service, would be available on it. 5. It is also clarified that transportation of goods by road by a GTA, in cases where GTA undertakes to reach/deliver the goods at destination within a stipulated time, should be considered as services of goods transport agency in relation to transportation of goods for the purpose of notification No. 26/2012-ST dated 20.06.2012, serial number 7, so long as (a) the entire transportation of goods is by road; and (b) the GTA issues a consignment note, by ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
