TaxTMI 
TaxTMI 
2010 (1) TMI 430
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....der the category of Clearing & Forwarding agent. 2. The applicants are engaged in providing taxable service falling under the category of "Transport of Goods through pipeline or other conduit service". Transportation of natural gas through pipeline was introduced as taxable service w.e.f. 16-6-05 and accordingly, the applicant starting paying Service tax under the category of Transport of goods through pipeline or other conduit service. A detailed scrutiny was carried out and it was alleged that the applicant was engaged in forwarding natural gas to various bulk shippers comprising industries such as power, fertilizer, steel and chemical plants which require natural gas as fuel or feedstock for their operations. It was further transpired....
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.... entry inasmuch as earlier entry relating to advertisement remains unchanged without any change in tax rate. Introduction of new tariff entry implies that coverage in new tariff for the purpose of tax was an area not covered by earlier entry. In the case of M/s. Gujarat Chem. Port Terminal Co. Ltd. v. CCE as reported in 2008 (9) S.T.R. 386 (Tri.-Ahmd.), it was held that "effect of law of Service tax on new taxable service, activity made liable to Service tax from particular date, such activity not taxable under pre-existing service category when definition of earlier categories not changed." Learned counsel further submitted that on merit also they are not covered under the category of clearing and forwarding agent. Finally he submitted tha....
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....wever, accepts full responsibility for any demurrage which may be incurred in respect of the Consignments of the said products despatched by rail, road, air or water provided it is not due to the fault of the Company." 4.1 He further relied upon the clarification on Service tax vide Ministry of Finance (Deptt. of Revenue)'s Letter D.O.F. No. 334/1/2008-TRU, dated 29-2-08, wherein it was clarified as under: "2. INCREASE IN THRESHOLD EXEMPTION LIMIT FOR SMALL SERVICE PROVIDERS 2.1 The annual threshold limit of Service tax exemption for small service providers is being increased from Rs. 8 lakh to Rs. 10 lakh by amending Notification No. 6/2005-Service Tax, dated 1-3-05 vide Notification No. 8/2008-Service tax, dated 1-3-08. Amendment sha....
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....pply or the component can be considered as separate taxable service in its own right. A service, which does not constitute for a customer an aim in itself but a means of better enjoying the principal supply, is considered as a supply ancillary to the principal supply. 3.3 Section 65A states the principles for classification of taxable services. Classification of a composite service is based on that component of the service which gives the essential character. There is a need to determine whether a given transaction is the one containing major and ancillary elements or the one containing multiple and separate major elements. In the case of a transaction containing a major and ancillary elements, classification is to be determined based on ....