2009 (5) TMI 178

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rports. The activity involved is loading/unloading and transport of cargo. Revenue proceeded against the appellants on the ground that the said activity would be liable to Service Tax under the category of "cargo handling service". The ld. Advocate informed the Bench that this issue cropped up in several Commissionerate's and proceedings were initiated against the assesses. Further, he stated that the issue has been squarely covered by the decision of the Ahmedabad Bench of the Tribunal in the appellant's own case reported at 2008 (11) S.T.R. 645 (Tri. - Ahmd.) wherein it is held that the transportation of cargo from one place to another by the airways would not amount to-cargo handling services. It has been stated that the appellant neithe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he public at large and as such, are not perceived to the trade or public as a cargo handling agent. As observed by the Hon'ble Supreme Court in the case of Asian Paints India Ltd. v. CC.E. - 1988 (35) E.L.T. 3 (S.C.), the expression as appeared in the taxing statute should be construed in its popular sense, which means that sense which people conversant with the subject would attribute to it and commercial understanding in respect of the same should be preferred. By applying the above criteria, the appellants are admittedly not understood in the common parlour as a cargo handling agency, inasmuch as they are admittedly airline company. It may not be out of context to observe here that in case the cargo is not booked by the said airline, the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ces, it will create a preposterous situation for the department, where each and every transport operator such as Railways, Roadways would be covered under cargo handling services and the new services of transport of goods by the Air or Road will become redundant as transport of goods cannot be envisaged without loading/unloading. 6. We also further note that the Board circular issued by F. No. B2/8/2004- TRU dated 10-9-2004 in the case of "transport of goods by air Services" explains - In addition to the actual air freight charges, all charges collected towards storing, handling, loading, and unloading (done in relation to air transportation of cargo) by an airlines are also chargeable to this levy. Therefore, it can be said that such se....