Internal factory movement of goods is not cargo handling service where no transport cargo is involved.

Internal shifting of unfinished and finished goods within factory premises does not constitute cargo handling service under service tax law. The term "cargo handling" was construed to cover loading, unloading, packing or unpacking of cargo, and "cargo" was understood in its ordinary sense as goods loaded or unloaded for transport by truck, aircraft or ship. Because movement confined to the factory did not involve cargo in that statutory sense, the activity fell outside the charging description and was not exigible under that head.

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Issues: Whether shifting unfinished and finished goods within factory premises falls within the definition of cargo handling service under service tax law.

Analysis: The definition of cargo handling service was understood as covering loading, unloading, packing, or unpacking of cargo. Goods moved within the factory premises were held not to answer the ordinary meaning of cargo, which refers to goods loaded or unloaded on a truck, aircraft, or ship. On that construction, internal movement of goods within the factory did not satisfy the statutory definition.

Conclusion: Such activity is not cargo handling service and is not exigible under that head.

Final Conclusion: The demand could not be sustained as the disputed activity fell outside the charging description for cargo handling service.

Ratio Decidendi: Internal shifting of goods within a factory premises does not constitute cargo handling service unless the activity involves cargo in the statutory sense of goods loaded or unloaded for transport.

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