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September 2011

Cargo handling service — Whether the definition of ‘cargo handling service’ in section 65(23) of the Finance Act, 1994 covers handling of goods within factory premises.

By Puloma Dalal
Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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(2011) 23 STR 6 (Jhar) — Commissioner of C. Ex., Ranchi  v. Modi Construction Company.

Facts:
The respondent company handled goods in the premises of the factory of M/s. Bihar Sponge Iron Ltd. The Revenue contended that the act of handling the unfinished and finished goods within the factory premises of a manufacturer by the respondent was covered under the category of ‘cargo handling service’ u/s.65(23) of the Finance Act, 1994.

Held:

The Court held that the activity of shifting the finished and unfinished goods within the factory premises could not come within the definition of ‘cargo handling service’ and accordingly the appeal was dismissed.

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