Transportation of goods cannot be taxed under Cargo Handling Service

S. K. Mineral Handling Private Limited Vs Commissioner, Central Excise, Customs & Service Tax (CESTAT Kolkata)

In this case contract is essentially for the transportation of goods which incidentally involving loading of tipper/unloading of tipper at Railway Track head/Railway Siding which cannot be taxed under the category of Cargo Handling Service simply because rates for loading of tipper at Dump Yard and unloading of tipper at Railway Siding is not provided separately. The Learned Commissioner (Appeal) has erred in placing reliance on Circular No.B11/1/2002-TRU dated 01-08-2002 which does not apply to the facts of the instant case. Further, it is no body’s case that the Appellant is a Cargo Handling Agent to attract the levy under the category of Cargo Handling Services.

FULL TEXT OF THE CESTAT JUDGEMENT

This Appeal arises out of the Order-in-Appeal No. 05/ST/B-II/2009 dated 30 January 2009 passed by the Learned Commissioner (Appeal) of Central Excise, Customs & Service Tax, Bhubaneswar.

2. The facts of the case in brief are that during the period under dispute i.e. January’ 2005 to December’2005 the Appellant executed composite activity of local transportation of Iron Ore from mines dump yard to the Rail Track Heads/Railway Siding upto lead of ¹/₂ km in Automated Tipping Trucks (goods carriage), with incidental loading into such tipping trucks & automated unloading at the Railway Track Head/Railway Siding.

Please become a Premium member. If you are already a Premium member, login here to access the full content.