Levy of Service Tax on transpotation of goods by rail on oilcakes

[Asked by Guest]

Dear Sir,

Recently Ministry of Railways, Railway Board issued a freight marketing circular No. 21 of 2012 dated 28.09.2012 regarding  LEVY OF SERVICE TAX ON TRANSPORTATION OF PARCEL TRAFFIC  BY RAIL FROM 1st OCTOBER 2012. In which point 2.0 provide that the - Commodities exempted from payment of service tax as per Ministry of Finance  Notification No. 25/2012 dated 20th June 2012 are:

(a)     relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

(b)      defence or military equipments;

(c)     postal mail or mail bags;

(d)     household effects;

(e)     newspaper or magazines registered with the Registrar of Newspapers;

(f)      railway equipments or materials;

(g)     agricultural produce;

(h)     foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages;

But not include point no. (a)  petroleum and petroleum products falling under Chapter heading 2710 and  2711 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986); & point no. (j) chemical fertilizer and oil cakes; of notification  no. 25/2012 dated 20th June 2012.

Kindle advise me whether this points (a & j) are include for exemption from payment of service tax on transpotation of goods by rail or not.

Thanks

AI Summary

Service tax exemption on transportation by rail covers petroleum products and chemical fertilizers/oilcakes despite operational booking practices.
The Mega Exemption Notification exempts petroleum products and chemical fertilizer and oilcakes from service tax when transported by rail. This statutory exemption, granted by central fiscal authority, cannot be denied by subordinate authorities. Operational practices-such as these commodities typically being moved in wagons rather than parcel bookings-may explain their omission from a railway circular, but do not alter the exemption.