Case Law Details
Laxmi Narayan Transport Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that composite contract involving transportation of goods and loading/unloading, packing/unpacking, etc. will be treated as a contract for transportation only as the other services are naturally bundled together with the principal service of transportation. Accordingly, service tax leviable under GTA service and not under cargo handling service.
Facts- The Central Preventive unit(CPU) of Central Excise and GST Commissionerate, Bhubaneshwar, initiated an investigation against the Appellant, M/s Laxmi Narayan Transport, on the allegation that they have failed to discharge Service tax on the services provided to M/s. Sanjay Sahani Transport Agency (P.) Ltd. (SSTAPL) and M/s. Jindal Stainless Limited (JSL).
Thereafter, a Show Cause Notice dated February 14, 2018 was issued to the Appellant demanding Service tax of Rs.3,16,39,804/- along with interest and penalty for the period 2012-13 to 2016-17, by invoking extended period of limitation. The said demand was computed on the basis of TDS Certificates in form 26AS issued by the Income tax The said Notice was adjudicated by the Commissioner vide impugned order dated 02.05.2019, wherein the demand of service tax made in the notice was confirmed along with interest and penalty, by classifying the service rendered by the Appellant as ‘Cargo handling service’. Aggrieved against the impugned order, the Appellant has filed the present appeal.
Conclusion- Held that when a composite contract is entered into between parties for transportation service including various intermediate or ancillary services provided in relation to the principal service of road transport of goods such as loading/unloading, packing/unpacking, transhipment etc., which are provided in the course of transportation, such contract cannot be vivisected. It will be treated as a contract for transportation only as the other services are naturally bundled together with the principal service of transportation.
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