AI Drafter 
TaxTMI 
TaxTMI 
2023 (5) TMI 99
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....set aside by the impugned order on the ground that issue is of pure interpretation. 1.1 The order of original adjudicating authority not imposing penalty under Section 76 was sustained by the impugned order and the Revenue appeal on that ground was dismissed. 2. Learned counsel for the appellant pointed out that they are in appeal against demand of service tax and interest on services provided by them to M/s Rajkot Dist. Co. Op. Milk Prod. Union Ltd. (hereinafter referred to as Rajkot Dairy) and imposition of penalty under Section 78 of the Finance Act, 1994. He pointed out that the appellant had entered into an contract with Rajkot Dairy for the work of dispatch of their products namely, Gopal Milk, Gopal Ghee, Amul Milk, Amul Ghee, ....
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.... STR (259) to hold that where the entire scope of work is movement of goods within the factory premises, then it does not come under the scope of 'Cargo Handling Service'. He also relied on the decision of Tribunal in the case of P.R. Nayak Associates reported in 2019 (26) GSTL 91, wherein it has also been held that where goods are moved within the factory, they do not get covered in the scope of service of Cargo Handling. 2.3 He further pointed out that Commissioner (Appeals) has clearly held that the issue involved is of interpretation, and therefore, he has set aside the penalty under Section 76 and 77. He pointed out that on the same ground the benefit of limitation may be allowed to the appellant. 3. Learned Authorized Representa....
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....ing into consideration the rate of your labor contract and in this regarding in pursuance of the discussion had with you on Date: 26.10.2004 the prevailing current work as per consent letter produced by you vide No. 524/QS/RO4/05/102, Date: 30.03.05 you have been appointed to as labor contractor from 01.04.05 to 31.03.06 binding to all previous terms and conditions Sr. Nature of Operations Approved Rate 1. Dispatch to dispatch work (Gopal + Amul Pouch per crate) 0.44 Paisa 2. Dispatch to dispatch Gopal, Amrut Butter mill per crate 0.44 Ps. 3. 5 Ltrs. Milk Pouch work per crate 1.90 Ps 4. 200 ml Pouch packing work 0.45 Ps. 5. Gopal Ghee Packing work per crate 0.50 Ps. 6. Gopal Ghee C....
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....en. You shall be bound by the rules laid down in the Agreement and the directions given by the authorized officer of the Union from time to time. According to this order, the given work has to be taken care of. If the performance is not satisfactory during the term of the contract, then the contract can be terminated with or without giving the necessary notice and if you want to terminate the contract with the union itself, you have to give a notice of 1 month. Also, according to the instructions of Hon'ble Federation, the conditions and bids, deposits, etc., should be signed on the Non Judicial stain paper. If any question arises during the contract, the decision of the Federation Chairman will be final. It w....
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....oordination with the Department head, despite this any question rests to be reporting to undersigned. During currency of work in case due to negligence or indiscipline by labor or supervisor if any question arises and dairy production process gets harm the federation can recovery to as penalty from your monthly Bill. As the dairy is in the process of getting a license under 150, all the workers will have to submit the prescribed uniform and ID Card by the administration. Within 15 day of receipt of the work order, you have to provide all the legal documents and required to pay deposit of Rs. 25000/-. You have to deduct your workers' P.F. and the amount of ESI regularly and to be deposited to the in ti....
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....any movement of goods within the factory does not make it a cargo. 5. From the above, we notice that the contracts are not in the nature of 'Cargo Handling' but are in the nature of labour contract on piece rate basis. Thus, classification of these services under 'Cargo Handling Service' cannot be sustained. 6. Revenue has relied on the decision of Signode India Ltd. (supra). In the said case, it has clearly been held that only packing of goods for the purpose of transport would get covered in the category of 'Cargo Handling Service'. In para 8, 9 and 10 following has been observed: "8. A careful reading of Section 65(23) of the Act, which defines Cargo Handling Service would go to show that though the word packing is include....