Loading/Unloading of goods in factory-whether covered under Cargo Handling Service

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SOY P ITTY on 21 Apr, 2016 wrote:

YOU SIR IS A GREAT PERSON TO SERVE WITH OUT ANY SINGLE PENY. AND YOUR ADVICE RELATED EXCISE AND SERVICE TAX IS VERY VALUABLE FOR GRADUATE/POST GRADUA ...
hitesh on 03 Apr, 2016 wrote:

THANK U SIR 4 UR REPLY ON RATE OF INTEREST
hitesh on 20 Mar, 2016 wrote:

Thank u sir for ur reply regarding ssi exemption limit.
visuiyer on 09 Mar, 2016 wrote:

the budget analysis is really superb... and has highlighted all the aspects.. Hats off Sir ji..
hitesh on 06 Mar, 2016 wrote:

THANK U SIR FOR YOUR REPLY REGARDING THE TARIFFS I ASKED
hitesh on 29 Feb, 2016 wrote:

THANK U SIR FOR GUIDING ME IN THE QUERY OF REFUND.I M THANKFULL TO U.
Abhimanyu Singh on 08 Feb, 2016 wrote:

GST should be passed in this budget. all parties should help in public benefit. Opposition of the party in this regard is not good.
CA R P Vijay on 04 Jan, 2016 wrote:

Thanks and we also wish you and your family a very happy and prosperous new year.
Rahul Singhvi on 04 Jan, 2016 wrote:

Thank you for your lovely greetings ! Wishing you & your family a very happy & fun filled New Year
O V Srinivasan on 04 Jan, 2016 wrote:

We from Gokak Textiles limited wish you and your team a very happy and prosperous New Year 2016.

Case Laws

PJ/Case Laws/2011-12/1300

Loading/Unloading of goods in factory-whether covered under Cargo Handling Service

Case: COMMISSIONER OF C. EX., RANCHI VersusMODI CONSTRUCTION COMPANY

Citation: 2011 (23) S.T.R. 6 (Jhar.)

Issue:- Unloading /loading of goods within factory premises – whether covered under ‘Cargo Handling Service’?

Brief Facts:- Respondent-Company was handling the goods in the premises of the factory of M/s. Bihar Sponge Iron Ltd. Revenue contended that Respondent’s act of handling the unfinished and finished goods within the factory premises of M/s. Bihar Sponge Iron Ltd. Was covered under the category of "Cargo Handling Services".

Reasoning of Judgment:- The High Court held that as per sub-section 23 of Section 65 of the Act, cargo handling service means loading, unloading, packing or unpacking of cargo. This definition does not in any way can be considered to cover handling of goods within the factory premises because cargo, according to the dictionary meaning of the expression, means 'loaded or unloaded on a truck, aircraft and ship'.

It was accordingly held that since the activity of shifting the goods finished and unfinished goods within the factory premises could not come within the definition of cargo handling service and, therefore, this kind of service activity could not be termed as service activity.

Decision:- Appeal dismissed.

Comment:- This is very important decision because in almost every company, this work of packing as well as loading and unloading is being given on contract basis. The department always insists on payment of service tax on the same. But it is not covered under “cargo handling services”. But the department has started saying that it is covered under “man power recruitment agency”. However, when the complete work is given on job work then it is not supply on manpower and the service tax will not be payable.

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