Waiver granted to Cooperative Society for transportation services; loading/unloading activities ruled not under Cargo Handling.

The Tribunal granted a waiver of pre-deposit of tax and penalties to a Registered Cooperative Society providing transportation services, ruling that the loading and unloading activities were incidental to the transportation services and not covered under Cargo Handling Services. The Tribunal considered the nature of the services provided, the terms of the Agreement, and relevant legal interpretations, ultimately finding in favor of the applicant and allowing the waiver until the appeal's disposal.

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Issues involved: Application for waiver of pre-deposit of tax and penalty for services provided by a Registered Cooperative Society under the Cargo Handling Service.

Summary:
The applicant, a Registered Cooperative Society, entered into an agreement with M/s. Rajasthan State Mines Minerals Ltd. (RSMML) to provide transportation, loading, and unloading services. The demand of tax was raised under the Cargo Handling Service for the period from 16-8-2002 to 30-9-2004.

The applicant contended that they were primarily providing transportation services, with loading and unloading being incidental activities. The applicant cited relevant portions of the Agreement and Tender copy, along with a Tribunal decision and a Board Circular to support their argument.

The Departmental Representative (DR) argued that based on the Agreement, the services provided by the applicant fell under the definition of Cargo Handling Services. The DR also referred to a Board Circular and a Tribunal decision to support their stance.

After considering the arguments and perusing the records, it was observed that the applicant's work mainly involved transportation of goods, with loading, stacking, and watch and ward services being additional. The bills showed charges for transportation and loading, indicating that loading and unloading were incidental to the transportation services.

Referring to a Board Circular dated 6-8-2008, it was clarified that transportation is not the essential character of cargo handling service but only incidental to it. Therefore, the Tribunal found that the applicant was primarily providing transportation services, not covered under Cargo Handling Services. As a result, the Tribunal granted a waiver of pre-deposit of tax and penalties until the appeal's disposal.

(Order dictated and pronounced in open court on 30-12-2008)

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