CARGO HANDLING SEVICE

CESTAT, NEW DELHI BENCH

Kataria Transport Corpn.

v.

Commissioner of Central Excise, Indore

S. S. Kang, VICE PRESIDENT

AND C.N.B. NAIR, JUDICIAL MEMBER

ST/S/1760 ST/A NO. 402 OF 2007

STAY ORDER NO. 439 OF 2007

AUGUST 23, 2007

Section 65 read with section 86 of the Finance Act, 1994 – Cargo handling service – Service tax was demanded from assessee on ground that it was providing business auxiliary service of cargo handling service and imposed penalty – Assessee’s case was that it was a transporter and receiving goods booked for destination by other transporters and other transport agency was paying service tax on entire freight amount, and it was collecting freight amount at destination and retaining amount related to service provided by him and returning remaining amount to original transporter – Whether since original transport agency who enters into an agreement with client regarding freight up to final destination and discharged his service tax liability as a Goods Transport Agency on entire freight amount, assessee had a strong case in its favour and therefore pre-deposit of amount of service tax and penalty was to be waived – Held, yes (Para 3)