TaxTMI 
TaxTMI 
2018 (4) TMI 1040
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....ere paying Service Tax under the category of GTA services. The appellants were only loading timber logs from the port area and lift them into truck/trailers and transported it to area situated in the ranges of around 50 to 60 km. He pointed out that to avoid litigation, they started paying Service Tax on the total income including transport from Port considering it is cargo handling. He pointed out that there was no written agreement and they were involved in the activity of transport the logs from the port to their client s premises. Learned Counsel pointed out that the main activity of the appellant was loading/unloading of timber logs into the truck/trolley and transport of the same to nearby location of the importer. Learned Counsel arg....
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....lowing were clarified: - "3. Issue : GTA provides service to a person in relation to transportation of goods by road in a goods carriage. The service provided is a single composite service which may include various intermediary and ancillary services such as loading/unloading, packing/unpacking, transshipment, temporary warehousing. For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In such a case, whether the intermediary or ancillary activities is to be treated as part of GTA service and the abatement should be extended to the charges for such intermediary or ancillary service Clarification : GTA prov....
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....based on essential character by applying the principle of classification enumerated in section 65A. Thus, if any ancillary/ intermediate service is provided in relation to transportation of goods, and the charges, if any, for such services are included in the invoice issued by the GTA, and not by any other person, such service would form part of GTA service and, therefore, the abatement of 75% would be available on it." 4.1 Learned Counsel argued that mere loading and unloading of timber logs at the port or at the premises of the importer does not confirm the activity undertaken by them into cargo handling activity. He pointed out that the clarification of the CBE&C also substantiated their argument in this regard. He had also relied on th....
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....e essential features of the transaction. The interpretation of specified descriptions of services in such cases shall be based on the principle of interpretation enumerated in section 66F of the Finance Act, 1994. Thus, if ancillary services are provided in the course of transportation of goods by road and the charges for such services are included in the invoice issued by the GTA, and not by any other person, such services would form part of GTA service and, therefore, the abatement of 70%, presently applicable to GTA service, would be available on it. 5. It is also clarified that transportation of goods by road by a GTA, in cases where GTA undertakes to reach/deliver the goods at destination within a stipulated time, should be considere....
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....tage the goods are not cargo within the common meaning of the word. As per records of the case, on the entire component of transportation the receiver of the service has already paid Service tax under the category of services of Transportation of Goods by Road. No separate component of compensation for loading and unloading is seen from the contract. In this respect the contract under consideration is different from the contract considered in the case of Gajanand Agarwal where there was a rate for loading of railway wagons based on the number of wagons loaded. In the contracts under consideration there is a predominant activity of transportation. The cargo handling activity is incidental to transportation. Revenue s attempt to convert such ....