Case Law Details
Usha Martin Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
Introduction: In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Kolkata quashed a service tax demand related to cargo handling services in the case of Usha Martin Limited vs. Commissioner of Central Excise. The decision provides clarity on the classification of services and the application of service tax in cases involving a combination of services.
Detailed Analysis
1. Background: Usha Martin Limited (Appellant No. 1) and M/s Bhadoria Transport Company (Appellant No. 2) were involved in a contractual arrangement during which Appellant No. 2 provided services related to the transport of goods. These services included loading and shifting of materials from a private railway siding to a stacking yard. While Appellant No. 1 initially paid service tax under the category of Goods Transport Agency (GTA) service, the tax liability later shifted to the category of Cargo Handling Service at the direction of the Directorate General of Central Excise Intelligence (DGCEI).
2. Service Tax Demand: A show-cause notice was issued, alleging that the services provided by Appellant No. 2 fell under the Cargo Handling Service category instead of GTA service. The notice covered a period from October 1, 2004, to March 31, 2009. It accused Appellant No. 1 of evading service tax in connection with these services.
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