2013 (10) TMI 1437

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.... 3-5-2013. By the impugned order the Commissioner has for the period March, 2008 to June, 2010 confirmed the following demands. (a) Under the category of Airport Service ₹ 1,88,64,466/- (b) Under category of storage and warehousing service ₹ 1,07,35,260/- Total demand confirmed ₹ 2,95,99,726/-. Further interest on the said amount, equivalent penalty under Section 78 and also penalty @ 2% on the amount of ₹ 8,16,858/- under Section 76. The appellant which is a joint venture company between GMR Hyderabad International Airport Pvt. Ltd. Menzies Air Cargo Pvt. Ltd., Mauritius. The appellant has been appointed as cargo handling agent GHIAL and is also registered as a service provider under the category cargo handling ....

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....AWB and acknowledging the same to the agent. (b) Screening : * Loading cargo in trolleys for screening * Loading cargo on x-ray machines * Screening of cargo through x-ray machines. * Unloading cargo from x-ray machine. (c) Unitization/build-up : * Build-up of cargo pallets * Lashing and packaging of cargo pallets * Weighing of cargo * Handing over of cargo to ground handling company The terminal storage processing charges are collected from the consignor, delivers the cargo to the appellant for export and the screening and unitization/build-up charges are collected from the airlines and the same are in relation to the aircraft. The appellant also levies demurrage charges post-72 hours to the airlines or the consignor if ....

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....red. That the exemption for export cargo is only with respect to these activities. (2) That the definition of storage and warehousing services is wide enough to cover all kinds of storage activities. (3) That the demurrage also charged as the goods are stored and stocked by custodian i.e. the appellant and if something is stored beyond the normal time, demurrage charged. (4) The Commissioner has held that exclusion to mere transportation under the heading of cargo handling service is granted because it is taxable under a different service i.e. GTA Service. Mainly on these grounds he has proposed to classify these activities under storage and warehousing services. As far as unitization and screening is concerned, he has stated that thes....