TaxTMI 
TaxTMI 
2016 (2) TMI 844
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....ppellate authority has not upheld the tax liability of services rendered under "Business Support Services" and "Cargo Handling Services" as also non imposition of penalties; while the appellant ssessee is aggrieved by the impugned order that the first appellate authority has confirmed the demand of service tax under "Cleaning Agency Services". 3. We have heard both sides and perused the records. 4. On perusal of records, it transpires that the appellant was awarded with a contract for Cleaning Services by Nashik Thermal Power Station. The appellant is service tax payer under the category of Cleaning Agency Services and Business Support Services. It is the case of the Revenue that during the period October 2003 to March 2008, there was....
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....ification of the demand, interest and penalties by reduction of the value indicated for loading and unloading of coal, movement of coal etc. 6. As regard the appeal of Revenue against setting aside of the demands raised under Business Support Services and Cargo Handling Services, we find that the first appellate authority has recorded following findings. "9.1 Service tax of Rs. 10,41,271/- on business support service has been demanded in the SCN considering gross value of Rs. 2,98,72,104/-. After careful reworking, JC has arrived at revised gross value of Rs. 2,80,33,390/-. And thereby reduced the demand to Rs. 8,21,865/- from Rs. 10,41,271/-. SCN alleges that appellant has provided the services off removal, collection loading t....
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.... other transaction processing. Explanation.- For the purposes of this clause, the expression "infrastructural support services" includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom facilities, pantry and security. 9.2 Further Board vide letter No. 334/4/2006-TRU dated 28-02-2006 circulated clarification giving scope of new services brought under the net. Para 3.13 relates to above service, which is reproduced below:- 3.13Business Support Services: Business entities outsource a number of services for use in business or commerce. These services include transaction processing, routine administration or accounta....
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....ng activity rather it covers the services mainly in relation to marketing/accounting/administration/management. The appellant is providing service to Thermal power Station who is engaged in production/generation of electricity. I thereof ore hold that the activity of appellant viz. removal, collection, loading, transporting and unloading of coal mill reject, RCF Coal and ash for which service tax is demanded and confirmed under the category off Business Support service is not sustainable and order to this extent is required to be set aside. 10.1 Show cause notice was issued demanding service tax of Rs. 18,68,069/- on Cargo handling service considering taxable value of Rs. 2,24,88,042/-.After careful reworking, JC has arrived at rev....
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.... transportation of goods. 10.2 The above definition suggests that it covers handling in relation to goods imposed as it specifically excludes export cargo. It also excludes handling of passenger baggage or mere transportation of goods. Clarification given under para 3, 3.1 and 3.2 in letter F. No. B 11/1/2002-TRU dated 01-08-2002 is also relevant and therefore reproduced below:- "3. The services which are liable to tax under this category are the services provided by cargo handling agencies who undertake the activity of packing, unpacking, loading and unloading of goods meant to be transported by any means of transportation namely truck, rail, ship or aircraft. Well known examples of cargo handling service are service prov....
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....rom railway wagons to the site of thermal Power station with the aid of wagon tippling system to be fed in boiler bunkers through conveyor system, the activity does not fall under the ambit of cargo handling services. Para of the said decision is reproduced below:- 10. In the instant case, the coal is handled/moved from fairway wagons to the site of Thermal Power Station with the aid of wagon tippling system to be fed in the boiler bunkers through conveyor system. It is evident that handling of the coal is done through wagon tippling system or conveyor system, they are mechanical devices and no motor vehicle is involved in the said handling. The clarification made by the CBEC also supports the petitioner's contention. It clearly ap....