TaxTMI 
TaxTMI 
2007 (8) TMI 57
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....ing the penalty, arising out of the same Order-in-Original dated 25-6-2004. Appeal No. EDM-06/06 is against Order-in-Appeal dated 25-1-2006 arising out of Order-in-Original dated 28-3- 2005. 2. The Learned Advocate appearing for the Appellants states that the Appellants are engaged in the business of material handling equipment and parts thereof and they also carry out activities like unitisation, straping, packeting or packing, the customers goods at their premises or sites. For the activities carried on by the Appellants in the premises of M/s. Tata Refractories Ltd., Belpahar they have been asked to take Service Tax Registration and under the impugned orders demand of Service Tax has been confirmed against them and penalty has been im....
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....oad to be carried - Chambers English Dictionary. Cargo : The goods transported by a vessel, air-plane or vehicle; freight - Black's Law Dictionary. 3.3 It is the contention of the learned Advocate that the Appellants that they do not handle any cargo and they do not come in the category of 'Cargo Handling Agency' and hence they are not liable to pay the service tax demanded from them. 4. Heard the learned SOR, who supports the impugned order and states that the law as it existed at the material time has to be interpreted without taking into account the scope and coverage of the new service included in the Finance Act w.e.f. 16-6-2005. He draws our attention to the provision in the Finance Act which provides for determin....
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....C also supports the petitioner's contention. It clearly appears that the Service Tax has been levied under the 'Cargo Handling', on such services which undertakes the activities of packing, unpacking, loading, unloading of goods to be transported by any means of transportation namely truck, rail, ship or aircraft. In the instant case, the service provided by the petitioner Firm under the contract is distinct i.e. transporting coal from wagons to Thermal Power Station by conveyor belt and not by any means of transportation. Thus, we are of the view that the service rendered by the petitioner under the subject contract does not fall under the ambit of Cargo Handling Services and as such it is not liable to pay the service tax. ....
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....y the Learned Advocate that the ratio of the cited decision should be applied to the case of the Appellants where the goods have been packed for subsequent transportation by truck/rail. The learned Advocate fairly admits that the decision of the Hon'ble High Court of Rajasthan is silent in regard to the initial movement of the coal by rail. 5.4 We find that the expression 'cargo handling service' covers packing of cargo for all modes of transport and since the Appellants have undertaken the activity of packing etc. to facilitate subsequent transport of the cargo, we are unable to accept their plea that they are not covered under the scope of 'cargo handling service'. The learned Advocate also made an attempt to argue ....