Cargo Handling Service

II. Tribunal :

2. Cargo Handling Service :

CCE, Jaipur-I v. Laxmi Trading Co. (2008 TIOL 541 CESTAT
DEL)

â The appellant entered
into contract of transportation of limestone from mines. Through the said
contract, it undertook series of services like mining, loading, transporting &
unloading, all incidental to the main contract. The demand was raised alleging
that loading and unloading service was liable for service tax under Cargo
Handling Service specifying that out of total billing, the amount attributable
to loading can be separated and be subjected to tax.

The Tribunal upheld the finding of the Commissioner (Appeals)
that bills have been raised for transportation of limestone and work of
loading/unloading was incidental to the transportation of limestone and
accordingly, not liable for service tax. Further, it was observed that
incidental activities were required to carry out the work of transportation and
therefore, the services rendered by the appellant to himself to execute the
contract cannot be made liable for service tax.