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.

[KASTURI SETHI]

These activities are covered under the category of "Cargo Handling Services" specified under erstwhile Section 65(105)(zr) of the Finance Act. Sugar and edible oil both are manufactured products falling under Chapter 17 and 15 of Central Excise Tariff Act respectively. These are out of the definition of "Agriculture Produce". Prior to 1.7.12 also, both of these were out of the definition of "Agriculture Produce".

 

[Himansu Sekhar]

Sugar and edible oil are not Agricultural produce. The Views of Kasturi sir are correct

AI Summary

Cargo handling services: loading, unloading and transport of goods treated as taxable rather than agricultural transport. The combined activities of unloading from railway rakes, loading into trucks and onward transportation constitute Cargo Handling Services and are taxable as service; sugar and edible oil are manufactured goods excluded from the definition of agriculture produce, so their carriage and handling do not attract agricultural-produce treatment.