2024 (12) TMI 671

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....tated are the appellant received cement in wagons at Hubli Railway Station and by engaging Hubli Railway Union personnel they unloaded the cement from the wagons and the said cement was stacked in railway goods shed. The appellant thereafter engaged Hubli local lorry owners Association for transportation of the cement. The workers of the Hubli Railway Union loaded the said cement on to the lorries from the Railway goods shed and the cement bags are either sent to the Vasavadatta Cement's Company godown or to their client's place directly as directed by M/s Vasavadatta Cements. Thereafter, the goods were unloaded from the lorries by the workers of Vasavadatta cement at their respective godowns. The appellant was paid an amount of Rs.11 p....

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....gent' services as they were not undertaking any custodial warehousing operation, receiving despatch or delivery orders from the principal or preparing invoice on behalf of the principal, etc. The appellant relied on the following 2(two) orders passed by the Commissioner (Appeals), Mangalore, wherein on identical facts it was held that the such activity would fall under 'Cargo Handling Service' and not under 'Clearing and Forwarding Agent' Services. a. Order-in-Appeal No.251/2005-CE dt.27.10.2005 in the case of B.V. Akki Transport Company, Hubli. b. Order-in-Appeal No.156/2008 dated.22.9.2008 in the case of Prafulla Y. Nirmale. 4. The appellant submitted that the above 2(two) orders by Commissioner (A....

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....ourt - 2010(18) STR J158(SC). f. Nandini Warehousing Corporation Vs. CCE, 2007 (8) STR 511(T-Bang). Appeal dismissed by Hon'ble High Court of Karnataka - 2015(39) STR J365 (Kar). g. Y.N. Warehousing Corporation Vs. C.C & CE, 2015(6) TMI 508 CESTAT-Mumbai. h. CCE Vs. Distributors India 2015 (7) TMI 232-CESTAT- New Delhi. i. Rajshree Enterprises Vs. CCE, 2017 (4) TMI 39-CESTAT - New Delhi j. TVS Logistics Services Ltd., Vs. PCST 2021 (50) GSTL 530(T). 7. The appellant further submitted that they have followed exactly what is specified in Rule 6(8) of the Service Tax Rules, 1994, which was prevalent during the disputed period and they had discharged service tax on commission/service charges recei....

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.... they commenced paying service tax on the entire value from April 2006 after Rule 6(8) of the Service Tax Rules, 1994 was omitted. The Appellant had paid service tax of Rs. 2,21,015/- for the period from 2004 to 2006, which has not been considered by the lower authorities resulting in illegal demand. The appellant further submitted that there were under bonafide belief that no service tax is payable and the issue was also referred to the Larger Bench twice in the case of M/s Sri Bhagavathy Traders and M/s Amit Sales. Hence the invocation of extended period of limitation is unsustainable. They have relied on the following judicial decisions. i. GD Goenka Pvt. Ltd. Vs. CGST 2023(8) TMI 995- CESTAT New Delhi. ii. Gannon Dunke....

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....ended that in the cases cited at para 2, supra the Commissioner (Appeals) on identical facts has held that the activity carried would fall under 'Cargo Handling Service' and not under 'Clearing and Forwarding Agent' services. 13. Further the appellant has raised the issue of limitation since the show cause notice was issued on 03.10 2007 for the period April 2002 to March, 2005. Further the appellant submitted that for computing the service tax they have included the service tax of Rs. 2,21,015 paid by them for the period April 2006 to December 2006. We find that the appellant has a case as regards the sustainability of the demand on limitation. We find that the issue of payment of service tax on reimbursements was decide....