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TMI Blog2025 (3) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of non-payment of service tax on 'Cargo Handling Services' CHS by wrongly classifying them as 'Goods Transport Agency Service' GTA. 2. The brief facts of the case are that the appellant having service tax registration are engaged in rendering taxable services of clearing and forwarding agent, storage and warehousing services, cargo handling services, goods transport agency service etc. During the course of audit of the appellant it was noticed that the appellant have wrongly classified the services of cargo handling as Goods Transport Agency Services. The appellant have provided the services to M/s. Fin Tech Corporation Pvt. Ltd. FTCPL for supply of goods at designated places and residence of the customers as per the instructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of goods by road and primarily responsible for arranging transportation of various goods for its clients from their distribution centre for delivering them at other locations of their clients. To execute the actual transportation of goods by road for clients, the appellant is hired by. FTCPL wherein appellant is required to actually transport the goods. Learned counsel has relied on the Circular issued by the department in this regard and also the decisions of this Tribunal in the case of Dalveer Singh Vs. Commissioner of Central Excise 2008 [9] S.T.R.491 (Tri.-Del.) , Hira Industries Ltd. Vs. Commissioner of Central Excise 2012 [28] S.T.R. 23 (Tri.-Del.), Raipur, Bhadoria Transport Co. Vs. Commr. of C. Ex. & Service Tax 2016 [46] S.T.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terminal, for all modes of transport, and cargo handling service incidental to freight; and (b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking, but does not include, handling of export cargo or passenger baggage or mere transportation of goods;] 65B(26). "goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called; 7. From the perusal of the definition as above, it appears that loading, unloading and packing or unpacking of cargo including freight special container. The main emphasis is on the 'cargo' and not 'transportation'. The decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CHS but only incidental to the CHS and in that even the services shall be treated as GTA services and not CHS. Reliance was placed on the decisions of the Tribunal in the case of R.K. Transport Company Vs. CCE Raipur 2012(27) S.T.R. 496 (Tri.-Del.) , Om Shiv Tansport Vs. CCE, Allahabad 2013(31)S.T.R. 152 (Tri.-Del.) , Modi Constrcution Co. Vs. CCE, Ranchi 2008 (12)S.T.R. 34 (Tri.-Kolkata) which was upheld by the Hon'ble Jharkhand High Court and it was concluded that in the case of composite services of shifting/transportation of materials where loading and unloading is ancillary to the main activity of transportation are held to be classifiable under GTA services. Similar view has been taken in the latest decision in Arvind Singh Lal Singh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 11 of this clause. (iii) The transportation rates are inclusive of all cost of the truck operator i.e. direct, indirect and incidental to transportation & operation of business including way side expenses but excluding Toll Charges (where agreed separately) & service tax if applicable. (vi) Toll, charges during transportation, if applicable, shall be paid extra at actual against submission of toll receipts/monthly toll passes. (v) Unloading charges during transportation, if applicable shall be paid as per agreed rates. (vi) Applicable transportation charges for a vehicle for a month shall be derived as per Total running during the month i.e. Fixed Cost+Total Variale Cost+unloading charges if applicable - Deductions & Penalty appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the findings of the Commissioner denying the benefit to the appellant on the ground that they had not provided the service of transportation of goods by road but have provided only services of supply of vehicles to FTCPL was held to be legally not coorect being contrary to the scope of services mentioned in the agreement. Reference is invited to latest decision of this Tribunal in the case of Karamjeet Singh & Co. Ltd. Vs. Commissioner of Central Goods and Service Tax, Customs and Excise (2024) 21 Centax 69 (Tri.-Del) where it has been held as under: 15. When WCL required a service provider to move the coal from one location to another and for this purpose, engaged the service of the appellant, the essential part of the contract is of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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