2018 (8) TMI 1589

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....g, unloading storage materials, filing of raw materials in bulk tanks/tankers, inventory ,warehousing, storage, transportation etc. to Hindustan Unilever Ltd. (hereinafter referred to as HUL) in assessee's factory. Assessee were also providing similar services at the premises of a godown leaded by HUL and also at the premises of the godown leased by the assessee himself. Assessees were registered under Man Power Recruitment Agency service and paying service tax liability under that category. However, pursuant to an audit conducted by the departmental officers, it appeared that the services provided by the assessee would be more correctly classifiable under Cargo Handling Services. Accordingly, a show cause notice dt. 21.10.2008 was issued f....

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.... has held that the services provided are classifiable under "Cargo Handling Services", "Business Auxiliary Services" and "Man Power Recruitment or Supply Agency Services" and hence Section 65A (2) has to be applied. iii) Ld. Advocate submits that in a number of judgements of higher appellate forums including High Courts, it has been held that similar activities carried out within factory / mill /mine are not classifiable under Cargo Handling Service. He also submits that the amounts of which service tax has been demanded cannot survive as it relates to reimbursable expenses of which the judgement of the Hon'ble Apex court in UOI Vs Intercontinental Consultants & Technocrats Pvt. Ltd. 2018-TIOL-76-SC-ST would apply. He draws our attention....

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....warehousing, finished goods handling etc. Hence these services would correctly fall within the scope of Cargo Handling Service. 4. Heard both sides and have gone through the facts. 5.1 What comes to the fore is that in the agreement entered into by the assessee with HUL both for the factory and also for the godown, the elements which are included within the scope of "Cargo Handling Service" are very much present. It is also seen that there is transportation involved in respect of cargo handled. Godown bulk tanker operations are also contracted to the assessee. Viewed in this light, we do not find any infirmity with the conclusions arrived at by both the original and the lower appellate authorities that the activities in of the nature ....