Cargo handling services relating to agricultural produce were...

Cargo handling services relating to agricultural produce were held eligible for exemption under Notification No. 10/2002-ST, because the invoices showed handling of items such as onion, grapes and spices and the Revenue produced no contrary corroborative evidence; the demand on that component was set aside. The Tribunal also sustained the demand for renting of immovable property service, as the assessee had itself accepted that part of the receipts and did not contest liability on that category. Considering subsequent registration for the taxable services, the Tribunal took a lenient view and waived the penalty under Section 77 of the Finance Act, 1994.