9911796707
TMI Blog2025 (1) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) of the Finance Act, 1994 that the respondent-assessee was alleged liable to pay service tax on the taxable value received by them from those different projects. It was observed that the respondent-assessee received a total some of Rs.17,96,07,795/- for the works performed by them since April 2008 to March 2013, out of which Rs.16,14,98,657/- has been worked out to be the taxable value. On this value service tax of Rs.1,81,09,138/- is proposed to be recovered from the respondent vide Show Cause Notice No. 99/2013 dated 22.10.2013 along with the proportionate interest and the appropriate penalties. The said proposal was initially confirmed vide Order-in-Original No. 68/2016-17 dated 22.03.2017. The said order has been set aside by Commissioner (Appeals). Being aggrieved of the said order, the department is before this Tribunal 2. We have heard Ms. Jaya Kumari, learned Authorized Representative for the department and Shri A.K. Batra, learned Chartered Accountant for the respondent. 3. Learned Departmental Representative for the department has submitted that the disputed period includes the period from 01.07.2012 to 31.03.2013 i.e. the post negative list period where categorizatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Keeping in view that the principal service is that of transportation of coal by road, the service tax is to be paid by the service recipient under Reverse Charge Mechanism. The service recipient i.e. M/s. Northern Coalfield Ltd. has already discharged the said liability. Hence, the demand of the same amount from the respondent is liable to be set aside. 4.2 With respect to the demand for the post negative list period, it is mentioned that the show cause notice since has wrongly classified the services as Cargo Handling Service and is also silent about charging Sections i.e. 66B and 65B (44) of the Finance Act, 1994 as are relevant for post negative list period, the demand for this period is also liable to be set aside. Otherwise also, the most of the period of demand is beyond the period of limitation. There is no suppression nor any mala fide intent on part of the respondent to evade the payment of tax. The demand for the extended period is therefore liable to be set aside. With these submissions, the order under challenge is prayed to be upheld and appeal is prayed to be dismissed. 5. Having heard the rival contentions and perusing entire records, we observe and hold as follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oad to be carried - Chambers English Dictionary. (v) The goods transported by a vessel, air plane or vehicle; freight - Black's Law Dictionary. (vi) Ships" Load - Webster's New Dictionary & Thesaurus. (vii) Cargo is the goods or merchandise conveyed in a ship, aeroplane or vehicle - Mitra's Legal & Commercial Dictionary Edition. The said dictionary meanings have used the expression "load", "ship's load", "carried", "Carrying", "transported" clearly shows that it is in past tense or present perfect tense which dearly indicates that goods becomes "Cargo" only after it is loaded into the ship or aeroplane or vehicles even Railway wagon and transported to another place. Before that it remains "Goods". 6.3 It is further observed that the Legislature has drawn clear distinction between the terms "Goods" and "Cargo". The intention of the Legislature can be gathered from definition of different services under the Act itself. Wherever Legislature intended to tax services relating to "Goods" it has unequivocally stated so and wherever Legislature intended to tax services relating to "Cargos", it has used the term "Cargo" to limit the scope of levy. For instance, under "T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o; (2) By inclusive terms: (B) Handling service relating to cargo: (i) Provided for freight in special containers or for non-containerised freight; (ii) Provided by a container freight terminal or, by any other freight terminal; and (3) Cargo handling service provided which is incidental to freight. 16. What that appears to be necessity of law for taxation under the class cargo handling service is that the service provided should be relating to or in relation to cargo handling by a cargo handling agency. The service provided should be integrally or inseparably connected with handling of cargo or attributable thereto without being a mere activity of transportation of such cargo since transport service independent of cargo handling is an exception under the scheme of levy by Section 65(23) of the Act. Thus it can be said that loading, unloading, packing or unpacking of cargo and handling of cargo for freight in special containers or non-containerized freight and service provided by container freight terminal or other freight terminal for all modes of transport are subject matter of taxation under the class "cargo handling service". That apart, any activity incidental ..... X X X X Extracts X X X X X X X X Extracts X X X X
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