April 2012
(2012) 25 STR 259 (Tri.–Del.) — Gayatri Construction Co. v. Commissioner of Central Excise, Jaipur.
By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 2 mins
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Cargo handling services — Scope of shifting of goods within factory premises, supply of manpower for manual assistance at various points of loading using conveyer system, and small part of service of manual loading of cargo into railway wagons of trucks — Held, it is not within the scope of cargo handling service — Hence not liable to service tax.
Facts:
The appellant required manpower for managing various points in the mechanised process of loading of cement bags into trucks and railway wagon. The loading job was fully automated and the manpower supplied related only to supplementing the mechanised process of loading of cement bags. The appellant had also shifted the packed cement bags from various places within the factory premises. These goods were not meant for transportation. The appellant also carried out the job of shifting of coal from power plant to cement plant, breaking of big lumps of coal, etc. These activities were carried within the factory premises and were not meant for transportation.
Held:
Since labour supplied by the appellant were only supplementing the job of loading, the services carried out by the appellant did not come under cargo handling services. The job of internal shifting of goods at both the places did not come under cargo handling services.
