Handling and Transportation can be considered as Cargo Handling Services.

[samiuddin ansari]

Respected Sir,

One of the friends of mine is providing transportation service through truck from rake point to places specified i.e. including warehouse or Godown, by the parties for Agricultural produce, Sugar, edible oil etc., unloading of these cargos from railway rakes and loading into the trucks with the help of contract labour. Sir, I may kindly be advised as to whether my friend's transport company would be considered to be providing taxable service as cargo handling services as contested by the Service Tax Department or considered to be providing Handling and Transportation service related to agriculture produce. Also, inform as to whether sugar or edible oil can be considered as Agriculture produce or not.

Thanks with regards.

AI Summary

Transporting Sugar and Edible Oil from Railways Taxable as Cargo Handling Services per Finance Act, Not Agricultural Produce A query was raised regarding whether a transportation service involving the movement of agricultural produce, sugar, and edible oil from railway rakes to specified locations should be classified as taxable cargo handling services. The Service Tax Department contends it is taxable. Two replies clarified that such activities fall under 'Cargo Handling Services' as per the Finance Act, with sugar and edible oil being manufactured products, not agricultural produce. These items are classified under Chapters 17 and 15 of the Central Excise Tariff Act and have never been considered agricultural produce, even before July 1, 2012.