Service Tax and Penalty Demand u/s 78 Overturned Due to Misclassification of Labor Contracts as Cargo Handling Services.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Demand of service tax and Penalty u/s 78 of FA - Classification of services - Cargo Handling Service/Business Auxiliary Service, or not - It is noticed 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. - AT....