2019 (9) TMI 580

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.... 2. Briefly the facts of the present case are that the appellant has been providing the service of stevedoring service at Karwar Port and discharging the goods from the vessel to the wharf. Appellant got the service tax registration from 1.7.2003 and have paid the service tax thereafter. During the course of audit of the records, the department found that the assessee has not obtained service tax registration under the category of Cargo Handling Service and has not paid the service tax. Subsequently, show-cause notice dated 18.7.2007 was issued to the appellant proposing to demand service tax during the period from 16.8.2002 to 30.6.2003 amounting to Rs. 2,85,425/-. After following the due process, the original authority confirmed the dema....

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....r for non-containerized freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and any other service incidental to freight, but does not include handling of export cargo or passenger baggage or mere transportation of cargo. The taxable service, as per sub-clause (zr) of clause (90), is any service provided, to any person, by a cargo handling agency in relation to cargo handling services. 3. The services which are liable to tax under this category are the services provided by cargo handling agencies who undertaken the activity of packing, unpacking, loading and unloading of goods meant to be transported by any means of transportation namely, truck, rail, ship or aircraft. Well ....

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.... apex court read with CBEC Circular are fully applicable in the facts of the present case and the activity of stevedoring and discharging of goods on to the wharf not being an activity of loading and unloading of goods meant to be transported by any means of transport, hence the said activity do not come under the meaning and scope of cargo handling service. He also submitted that the entire demand is barred by limitation because the show-cause notice was issued on 18.7.2007 proposing to demand service tax for the period from 16.8.2002 to 30.6.2003 by invoking the larger period of limitation under Section 73(1) of the Finance Act. He further submitted that the appellant has a bona fide belief that Karwar Port being a minor port or other por....