2017 (9) TMI 227

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....iled the appeal against Order-in-Appeal No.342/2011 dated 16.8.2011. Both the appeals have got common subject matter; therefore, they are being decided by this common order. 2. These appellants entered into an agreement with M/s Nepa Ltd., Nepanagar, Burhanpur for providing various services including the following: (i) Unloading and stacking of raw materials from trucks/wagons (ii) For transportation (loading/unloading of raw materials. (iii) For feeding and sorting of raw material 2.1 The department is of the view that both the appellants provided various composite services which constitute cargo handling services as per provisions of Section 65A of the Finance Act, 1994. 2.2 The department issued show cause notices to bo....

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....inerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and cargo handling service incidental to freight; and (b) Service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking, But does not include, handling of export cargo or passenger baggage or mere transportation of goods." 4.2 When we go into the contents of the agreement/work order entered into by the appellants with M/s Nepa Ltd. where they conducted the subject entries. We find that under the title (2) scope of work inter alia following has been mentioned: "You shall be carried out the work and approx. quantity....

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....inance Act. 5. Recently, the Tribunal in the case of CCE, Udaipur Vs. M/s Balaji Builders & Contractors (Appeal No.ST/55875/2013-CU(DB) vide Final order No.54842/2017 dated 10.7.2017 held that loading and shifting of goods etc. within the factory premises is not to be covered under 'cargo handling service' as defined under Section 65(23) of Finance Act. The Tribunal in the said decision observes as under: "7. The short question involved in the present case for determination is whether the shifting and loading of railway sleepers within the factory premises of M/s. Rural Engineering Pvt. Ltd. a service provided by the respondent would be chargeable to service tax under the category of 'cargo handling services'. We need not dwell much o....

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.... 'Cargo- goods on merchandise conveyed in ship airplane or vehicle' Cargo- Entire load for ship which carries the load-interpreted by English Court in the case of National Dack Labour Board v. John Blarad & Co. Ltd. [(1971) 2 All ER 779, 789 (HL)]" In common 14. parlance 'cargo' means load, which is to be carried by ship, aeroplane, rail or truck. The handling of transportation of goods, by itself unless it is an organised activity, which is connected with carrying cargo (load) by ship, aeroplane, rail or truck is involved would not fall within the definition of cargo handling service. The definition specifically excludes handling of export cargo or passenger baggage or mere transportation of goods. In the p....