2026 (6) TMI 1230

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....s confirming service tax demand under the category of Cargo Handling Service. Since both the appeals involve common facts, common issue of classification and common legal submissions, they are being disposed by this common order. 2. The dispute in appeal no. ST/893/2012 relates to the period 2009-10, involving demand of Rs. 63,84,793/-, arising out of Order-in-Original No. VIZ-STX-001-COM-013-12 dated 18.01.2012. The dispute in appeal no. ST/20843/2014 relates to the period 2010-11, involving demand of Rs. 19,46,747/-, arising out of Order-in-Appeal No. 12/2014 dated 06.02.2014. The total demand involved in both the appeals is Rs. 83,31,510/-. 3. The fact, in brief, is that the appellant is engaged in activities connected with transpo....

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....ce means loading, unloading, packing or unpacking of cargo and includes,- (a) 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 transport, and cargo handling service incidental to freight; and (b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking, but does not include, handling of export cargo or passenger baggage or mere transportation of goods;" 8. The definition is wide. It does not restrict cargo handling service only to cases where the assessee personally undertak....

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....rged service tax under the category of Cargo Handling Service on marginal money. The conduct supports the Department's case that the appellant understood the essential nature of the service to be cargo handling and not mere GTA service. 11. The reliance placed by the appellant on the earlier Final Order No. A/30566/2019 dated 01.10.2019 does not advance it's case for the present period. Firstly, the present period is 2009-10 and 2010-11, whereas the earlier order related to previous periods. Secondly, Section 65(23) was substituted by the Finance Act, 2008 with effect from 16.05.2008, thereby expanding the scope of the definition. Thirdly, the Department has specifically submitted that the earlier order was not accepted on merits and app....

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....ecisive and the substance of the activity must prevail. The same principle applies to the present case. 14. The Department has also relied upon the decision of this Tribunal in the case of M/s MBA and Company Vs Commissioner of Customs, Central Excise and Service Tax, Hyderabad - III [2018 (8) TMI 332 (CESTAT-Hyd)], wherein, the wider scope of cargo handling service was considered. The ratio of these decisions supports the Department's contention that where loading, unloading, container handling and transportation are part of one composite arrangment, the service would fall under Cargo Handling Service unless it is a case of mere transportation of goods. 15. We are unable to accept the appellant's contention that because some activiti....