2025 (5) TMI 69

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., Unloading Charges, Overtime Charges, etc., and hence, notices were issued and the same was confirmed by the Commissioner/Commissioner (A) in the impugned orders along with interest under Section 75 of the Finance Act, 1994 and also imposed penalty under Section 76 and 78 of the Finance Act, 1994. Aggrieved by these orders, the appellant is in appeal before us. 3. The Learned Counsel for the appellant submitted that Joint Working Group was formed by the appellant through the Tripartite Agreement dated 15.01.2001 among M/s. Hindustan Aeronautics Ltd. HAL, M/s. Container Corporation of India Ltd., (CONCOR) and M/s. Mysore Sales International Ltd. (MSIL). These three companies which also includes the appellant were formed to establish an Air Cargo Complex at the Bangalore Airport for providing facilities for Handling Cargo on the premises belonging to the appellant for mutual benefit. 3.1 The appellant was appointed as a custodian under Section 45 of the Customs Act, 1962 for all goods unloaded in the customs area meant for import, export, and transhipment in accordance with the provisions of the Customs Act, 1962. As a custodian, the limited statutory responsibility of the appella....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o. Ltd.: 2009 (243) ELT 161 (Kar.). It is further stated that service tax is not liable on demurrage and overtime charges and relies on the decision in the case of Hyderabad Menzies Air Cargo Pvt. Ltd. vs. CCE & ST, Hyderabad: 2024 (18) CENTAX 496 (Tri. - Hyd.). It is further stated that the demand on sale proceeds received from sale of abandoned cargo is also not liable for service tax. There is no evidence to show that there is suppression of facts and hence, mere non-payment of service tax cannot be alleged as deliberate intention to evade payment of tax, hence, the extended period of limitation cannot be invoked. Being a public sector undertaking, in the absence of mala fide intention, the question of interest and penalty does not arise. 4. The Authorised Representative on behalf of the Revenue submitted that non-mention of category of service tax in the show-cause notice will not erase the liability of the appellant. Relied on the decision in the case of Standard Industries Ltd. vs. Commissioner of C. Ex. Mumbai: 2003 (158) ELT 623 (Tri.-Mum.). He also relied on decision in the case of Kerala State Industrial Enterprises Ltd. vs. CST, Trivandrum: 2011 (21) STR 423 (Tri.-Bang.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vices are in relation to warehousing the goods and hence, part of the storage and warehousing services and as per Board Circular F. No. B/11/1/2002 dated 01.08.2002 held storage and processing charges specifically include terminal charges. The second issue is with regard to service tax amount of Rs.6,84,887/- on the value collected as demurrage charges, packing charges, etc., in respect of unaccompanied passenger baggage and the claim of the appellant is that passenger baggage is excluded under Section 65(23) of the Finance Act, 1994 which has not been accepted by the Commissioner on the ground that these charges are collected after the completion of the expiry period of free warehousing and the demand is on the import baggage and not on the passenger baggage. The third issue is demand of Rs.6,42,038/- is towards storage of abandoned cargo. 6. The preliminary objection of the appellant that the first show-cause notice dated 14.09.2004 does not specify the category of services under which the demands are made and hence, for this reason itself the demand needs to be set aside. It is also submitted that the second show-cause notice dated 23.10.2009 cannot be sustained beyond the norm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n decided that the levy and collection of service tax on the new services shall be effective from 16-8-2002 (Vide Notification No. 8/2002-ST, dated 1-8-2002). 3. As you are aware, certain legislative amendments were made in sections 73, 75, 78, 82, 83, 94 and 95 of the Finance Act, 1994 vide section 149 of the Finance Act, 2002. All these changes will now be effective from 16-8-2002. The Service Tax Rules, 1994 have also been amended. Notification No. 12/2002-ST, dated 1-8-2002 has been issued in this regard. These amendments are also effective from 16-8-2002. ANNEXURE II CARGO HANDLING SERVICE 1. The section referred to hereinafter are the sections or clauses of the Finance Act, 1994 as amended by the Finance Act, 2002. Reference to sub-clause or clause means clause or sub-clause of section 65 of the Finance Act, 1994 as amended by the Finance Act, 2002. 2. As per clause (21), the term "cargo handling service" means loading, unloading, packing or unpacking of cargo and includes cargo handling services provided for 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....