Composition of service of packing, loading,

[Guest]

Cargo handling service has been defined as loading/unloading, packing and unpacking of cargo, whether in containerised form or not. Moreover service tax is not chargeable in respect of such services rendered for export cargo. My question is if a person renders composite service of packing, loading, TRANSPORTATION from godown to port & unloading of export cargo, is it still exempt from service tax? If not,whether the composite value is chargeable under the head 'C&F agents service'?

[Guest]

There are number of services which may be attracted having nature of contract explained in the query. If the result classification exercise is "Cargo Handling Service" you may enjoy the exemption.

[Madhukar N Hiregange]

In my view there is no doubt at all that the composite servcie would be covered under cargo handling and as per the defintion itslef if in relation to export not liable. Section 65A is clear that the servcie whcih provides the essntial characterisitcs is to be considered as appropriate when there are a combination of services. The classification under C&F would not be appropriate at all. In case dept has a different view as long as contracts are available to prove the nature of combined servcie the issue would be finally settled in your favour.

AI Summary

Cargo handling service may cover composite packing, loading, transport and unloading of export cargo, yielding export exemption under essential-character rule. If a composite service of packing, loading, transportation and unloading of export cargo is characterised as Cargo Handling Service, it is within the definition of loading, unloading, packing and unpacking and, when in relation to export cargo, is not subject to service tax; the essential character of the combined service governs classification and contracts evidencing the nature of the service will support treating it as cargo handling rather than C&F agents' service.