TaxTMI 
TaxTMI 
2017 (3) TMI 934
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Kumar Sharma,Adv. JUDGMENT RANJAN GOGOI, J. 1. Heard learned counsels for the parties and perused the relevant material. 2. The liability of the appellant to service tax on the basis that the service rendered by the appellant amounts to "cargo handling service" within the meaning of Section 2(23) of the Finance Act, 1994 [as amended by Finance (No.2) Act, 2004] is the core issue that arises for determination in these cases. 3. The appellant seeks to disclaim such liability by contending that the service rendered by it amounts to a "packaging activity" which has made exigible to service tax by amendment to the Finance Act, 1994 and by insertion of Section 65 (76b) and Section 105(zzzf) with effect from 16.06.2005. The appella....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es provided by a container freight terminal or any other freight terminal, for all modes of transport and cargo handling service incidental to freight, but does not include handling of export cargo or passenger baggage or mere transportation of goods; (76b) "packaging activity" means packaging of goods including pouch filling, bottling, labelling or imprinting of the package, but does not include any packaging activity that amounts to "manufacture" within the meaning of clause (f) of Section 2 of the Central Excise Act, 1944. Section 105 - "taxable service" means any service provided or to be provided:- (zr) to any person, by a cargo handling agency in relation to cargo handling services; (zzzf) to any pe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in the respective provisions of the Act. 8. A careful reading of Section 65(23) of the Act, which defines Cargo Handling Service would go to show that though the word packing is included therein, the same is referable to the word "Cargo" whereas in Section 65(76b) "Packing Activity" is defined to mean "Packaging of Goods". 9. The distinction between the two expressions, namely, "cargo" and "goods" in the two different provisions of the Act becomes evident if cargo is understood to denote goods which are ready for transportation whereas packaging of goods is a stage prior i.e. before they became cargo and in fact on completion of such packaging the goods become cargo. The position becomes more clear if the dictionary meaning of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ontainer Depot, Container Freight Stations. This is only an illustrative list. There are several other firms that are engaged in the business of cargo handling services." Clause 3, extracted above, makes the position abundantly clear that even the department had understood services provided by Cargo handling agencies undertaking the activities of packing, unpacking, loading and unloading of goods meant to be transported by any means of transportation, namely truck, rail, ship or aircraft as services liable to tax as "cargo handling services". 13. Clause 3.2 of the circular makes it clear that mere transportation of goods is not covered in the category of cargo handling. Clause 15 of the circular also makes it clear that an individual ....