CARGO HANDLING SERVICE
CESTAT
Pneumatic Power Tools & Co.
v.
Commissioner of Central Excise,
S.S. KANG, VICE PRESIDENT
AND T.V. SAIRAM, TECHNICAL MEMBER
STAY ORDER NO. ST/41-42/08
ST STAY APPLICATION 2352 AND
2358 OF 2007-CST BR
IN ST APPEAL NO. 562 AND 566 OF 2007
January 28, 2008
Section 65 of the Finance Act, 1994 - Cargo handling service - Under a
contract assessee under took activity of product packagi, and stamping bundles
and shifting same from stock to specified place of inspection - Under another
contracts assessee undertook for unitization of merchant products bundles
placed on wagons by metal strap - Service tax was demanded from assessee under
category of cargo handling service - Whether in view of terms of above contracts
prima facie, assessee was providing service of packing, and, therefore, it was
not a fit case for total waiver of amount of service tax - Held, yes - Whether
assessee was to be directed to deposit 50 per cent of total demand and on such
deposit, pre-deposit of remaining amount of service tax and penalties were to
be waive -Held, yes [Para 6]
FACTS
Service tax
demand was confirmed on the assessee under category of ‘cargo handling
service’.
On
application; -
HELD
One of the
activity undertaken by the assessee was product packaging and the assessee was
strapping the bundle by steel strap of required size which was also undertook
shifting of bundles from stock to the specified place of inspection. The
assessee had also undertaken opening and spreading of pieces for inspection.
The assessee also entered into another contract which was for unitization of
merchant products bundles placed on wagons by metal strap. In view of this
terms of this contract, prima facie, the assessee was providing the service of packing,
therefore, it was not a fit case for total waiver of amount of service tax. The
assessee was directed to deposit 50 per cent of the total demand. On deposit of
the above-mentioned amount, the pre-deposit of remaining amount of service tax
and penalties were to be waived. [