Export cargo transportation from CFS to port treated as cargo handling, not Business Support Service, in service tax dispute.

Transportation of export cargo from a container freight station to the port was treated as part of export cargo handling and not as Business Support Service. The statutory definition of cargo handling under Section 65(23) of the Finance Act, 1994 covers loading, unloading, packing and unpacking, while excluding handling of export cargo and mere transportation of goods. On the stated facts, the transportation charges arose from movement of export cargo and remained connected with cargo handling, so the demand could not be classified as Business Support Service. A prima facie case for complete waiver of pre-deposit was made out and recovery was stayed pending appeal.

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Issues: Whether transportation of export cargo by a container freight station from the CFS to the port of shipment was classifiable under Business Support Service or fell outside service tax as part of cargo handling service.

Analysis: The appellant was approved as a container freight station and was already registered under cargo handling service. The statutory scheme of Section 65(23) of the Finance Act, 1994 covers cargo handling activities such as loading, unloading, packing and unpacking, but expressly excludes handling of export cargo and mere transportation of goods. The demand was based on transportation charges received for movement of export cargo from the CFS to the port, and the record did not show that the activity ceased to be connected with export cargo handling. On these facts, the collection could not be treated as Business Support Service.

Conclusion: The appellant had made out a prima facie case for complete waiver of pre-deposit, and recovery of the disputed demand was stayed during the pendency of the appeal.

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