Applicability of Service tax under Cargo Hanlding Services

[Asked by Guest]

One of our client is providing services for transportation of Fertilizers and DOC to the train bogies so as to reach the goods by way of rail transportation media to their clients. Under this services my client is collecting Fertilizer Bags and DOC Bags from a godown, loading them on their Trucks and unloading the goods to the nearest Goods Train Bogies for which they are charging transportation charges. Neither any packing, unpacking, loading and unloading activities have been acutally undertaken by our client nor any chages have been recovered from the parties. We seek your opinion whether the above services are covered under Cargo Hanlding Services.

[Surender Gupta]

In terms of section 65(23) and facts explained in the query, it appears that this service is not chargeable to tax under Cargo Handling Servies.

AI Summary

Cargo handling services: carriage to train bogies without distinct handling charges is not taxable as cargo handling.
The provider collects fertilizer and DOC bags from a godown, transports them by truck to goods train bogies and charges transportation charges without separately levying for packing, unpacking, loading or unloading. Applying the definition in section 65(23), these facts indicate carriage rather than distinct cargo handling operations, and the activity is not chargeable as Cargo Handling Services.