TaxTMI 
TaxTMI 
2019 (4) TMI 907
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....„Gautami‟) for supply of power plant equipment and various services. It discharged its service tax liability on the services rendered by it under the following categories : S.NO. SERVICES SERVICE TAX CATEGORY 1. Designing and Engineering Services Consulting Engineering Service 2. Construction service Commercial and Industrial Construction Service 3. Erection, commissioning and testing service Erection Commissioning and Installation Service 4. Indian port of entry handling and inland transportation service Goods Transport Agency Service („GTA Service‟) 3. The dispute in the present appeal relates to the fourth category of services, referred to above, relating to „Indian port of entry handling and inland transportation service‟. 4. The Appellant was supplying power plant equipment and rendering services to GVK/Gautami. The Appellant contends that the power plant equipments were to be provided to GVK/Gautami by any of the following methods : i. The Appellant would import the equipments and supply them to GVK/Gautami; or ii. The Appellant would indigenously procure the equipments an....
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....ce to its customers and such services are not liable to service tax. Accordingly, no service tax is payable by the Noticee. They further pleaded that they have already paid service tax on the amount received on account of erection, construction, design and engineering services undertaken by the Noticee. The amount received on account of entry clearance at port and inland transportation is basically an amount on account for clearing the goods at the port and transportation of the same to the project site. The said amount is for transporting goods or machinery required for providing the desired services under the agreement. Thus, the Noticee is only responsible for safe transportation of the goods/materials for execution of the agreement and is not undertaking any kind of Cargo Handling services. Such services provided by the Noticee are classifiable as transportation services and not exigible to service tax. They further submits any handling undertaken by the Noticee is merely incidental to the main activity of transportation of goods from the port to the work site of its customers. Thus, the activity of handling is a part of the main activity of transportation of goods and cannot b....
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.... freight in special containers or for non-containerised 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, but does not include handling of export cargo or passenger baggage or mere transportation of goods." "65(50b) - 'goods transport agency' means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called." 11. Section 65(105) defines "Taxable Service". Section 65(105)(zr) defines "Taxable Service" provided or to be provided to any person by „Cargo Handling Agency‟ in relation to Cargo Handling Services. Section 65(105)(zzp) defines "Taxable Service" provided or to be provided to a customer by a Goods Transport Agency, in relation to transport of goods by road in a goods carriage. 12. The Revenue contends that the Appellant has incorrectly discharged Service Tax under the category of „Goods Transport Agency‟ as it is rendering „Cargo Handling Services‟ to GVK/Gautami and, therefore, Service Tax has been short paid. According to the Revenue, Appellan....
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....t by road services and it is reproduced below: "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 provides a service in relation to transportation of goods by road which is a single composite service. GTA also issues consignment note. The composite service may include various intermediate and ancillary services provided in relation to the principal service of the road transport of goods. Such intermediate and ancillary services may include services like loading/unloading, packing/unpacking, transshipment, temporary w....
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....onsignment notes that have been enclosed with the Appeal show that the distance covered is often than not more than 1000 kms. The learned Authorized Representative of the Department has also made an attempt to convince us that the services rendered by the Appellant were not merely transportation of the goods, but something more and, therefore, fell within the definition of „Cargo Handling Services. As noticed above, this activity, as is also apparent from the agreement, is clearly ancillary services provided in relation to transportation of goods. The Appellant is, therefore, correct in asserting that it is not providing „Cargo Handling Service‟. 17. This apart, "Taxable Service" under Section 65(105)(zr) is a service provided or to be provided to any person by „Cargo Handling Agency‟ in relation to „Cargo Handling Services‟. The Appellant is neither a „Cargo Handling Agency‟ nor is it the case set up by the Department in the show cause notice that it is a „Cargo Handing Agency‟. 18. In this regard, it would be appropriate to refer to the Circular dated 1 August, 2002 issued in relation to tax on ten new servic....