https://www.taxtmi.com/caselaws?id=771641 CESTAT New Delhi held that handling charges collected for ensuring breakage-free transit of fragile goods are not includible in assessable value for service tax purposes. Following Gujarat Borosil Ltd. precedent, the Tribunal determined that such charges constitute compensation for potential breakages during transit rather than taxable services. The charges were collected to ensure safe delivery of manufactured goods and were not insurance premiums paid to insurance companies. The service tax demand on handling charges was wrongly confirmed and the appeal was allowed, establishing that transit compensation charges fall outside the scope of taxable services under service tax law. en-us Tue, 13 May 2025 00:00:00 +0530 Thu, 29 May 2025 08:41:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771641 CESTAT New Delhi held that handling charges collected for ensuring breakage-free transit of fragile goods are not includible in assessable value for service tax purposes. Following Gujarat Borosil Ltd. precedent, the Tribunal determined that such charges constitute compensation for potential breakages during transit rather than taxable services. The charges were collected to ensure safe delivery of manufactured goods and were not insurance premiums paid to insurance companies. The service tax demand on handling charges was wrongly confirmed and the appeal was allowed, establishing that transit compensation charges fall outside the scope of taxable services under service tax law. Case-Laws Service Tax Tue, 13 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771641