MR. DALVEER SINGH Vs. CCEX

JUDGEMENT

(1.) VIDE impugned orders, the authorities below have confirmed Service Tax of Rs. 4,27,332/ - against the appellant by treating them as Cargo Handling Service Provider, alongwith confirmation of interest. In addition, personal penalty of identical amount stands imposed under Section 76 and under Section 78 of the Finance Act, 1994 alongwith imposition of penalty of Rs. 1000/ - under Section 77.

(2.) THE appellant had entered into two different contracts with M/s Chambal Fertilizers and Chemicals Ltd. (CFCL), Kota. As per contract No. JPR/HAND/2004 -05 dated 8.4.2004, the appellant was to supply the following services to M/s CFCL: While uploading the material from railway wagons, (Unloading of Fertilizers from wagons, stacking on platform and loading into the trucks from platform), stacking the same at the Company's warehouse and destacking and loading into truck the contractor shall protect the fertilizers from damage or loss by rains, pilferage or by any other such cases or reason. The contractor shall use tarpaulins to protect fertilizers in all respect while delivering the same to the company's warehouse. Second contract No. JPR/TPT/2004 -05 dated 8.4.2004 was as follows: The contractor shall make all arrangements to transport the fertilizers from Railway station/Warehouse which is/are situated to the city "Bharatipur". The material will be transported from railway goods shed/warehouse, to the warehouse, to the company's warehouses or to the dealer locations by the quickest means to transport, preferably by trucks.

(3.) THE authorities below by treating the appellant as provider of cargo handling and warehouse services, has confirmed the demand on the entire receipt by them from M/s CFCL, whereas the appellant's contention is that the tax is required to be paid only in respect of the amount, which they have received as Cargo Handling Service provider. Inasmuch as the services for transportation were not liable to tax for the period involved in the present appeal and were made taxable w.e.f. 11.1.2005, they are not liable to pay tax on the transportation charges received by them. It has also been contended that the said services were provided by Shri Dalbir Singh in his individual capacity though in the name of Rajasthan Transport Co. and in terms of Board Circular F. No. B -11/1/02 -TRU dated 1.8.2002, he is not liable to pay duty. Further, the demand has also been assailed on the point of limitation.