KUMARAVEL PACKERS AND MOVERS Vs. CCE

JUDGEMENT

(1.) THE lower authorities have demanded service tax of Rs. 37,421/ - and education cess of Rs. 221/ - from the appellants for the period 1.8.2002 to 12.10.2004. They have also imposed penalties on the party. After examining the records and hearing both sides, I find that the above demand of tax is on a gross amount of over Rs. 7.20 lakhs collected by the appellants from their clients for the service of handling goods by way of loading, unloading, packing, transporting, etc. The authorities designated the said services as 'Cargo Handling Service' in terms of Section 65(23) of the Finance Act, 1994 and accordingly demanded the above tax. It is the case of the appellants that a major part of the above amount was collected from individuals for the service of transporting house -hold goods and personal effects. It is their case that such goods would not come within the ambit of 'cargo'. In this context, a query was put to the consultant as to what part of the above gross amount was collected for handling 'cargo' in the sense understood by the appellants, but there is no satisfactory answer. In the circumstances, I direct the appellants to predeposit Rs. 15,000/ - (Rupees fifteen thousand only) for the purpose of Section 35F of the Central Excise Act rule with Section 83 of the Finance Act. This deposit shall be made within four weeks. Report compliance on 20.7.2007.