UNITED SHIPPERS LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) IN this stay order two Orders -in -Original in respect of the same applicant are being considered together, as the issue involved is common. The first Order -in -Original is dated 29 -11 -2012 and adjudicates four Show Cause Notices issued for different period of time (overall covering the period from 1 -7 -2003 to 31 -3 -2011). The second Order -in -Original is dated 18 -2 -2013 and adjudicates a subsequent Show Cause Notice dated 27 -9 -2012 covering the period from 1 -4 -2011 to 31 -3 -2012

(2.) THE first Order -in -Original confirms a demand of service tax of Rs. 56,36,38,084/ - under the classification "Cargo Handling Service" and appropriates the duty already paid under different classifications amounting to Rs. 4,99,98,663/ -, penalty under Section 78 amounting to Rs. 39,27,45,111/ -, in addition penalties under Sections 76 and 77 have also been imposed.

(3.) APPLICANTS have been operating in various minor ports, mainly in the States of Gujarat, Maharashtra and Goa. At minor ports, ships are not able to come alongside the jetty due to draft and are therefore anchored at some distance within the port area and cargo is unloaded/loaded at the place of anchorage. Applicant's activity is stevedoring, unloading of cargo from the ship on the barges. These barges along with cargo thereafter move to jetty. At the jetty, cargo is again unloaded from the barges to jetty. The cargo is thereafter moved from the jetty to a storage place within the port area on dumper/trucks. The cargo is stored in the port area and security and safety of the goods is ensured. Such cargo is thereafter loaded on trucks or railways for their transportation to the place of use/customer. For export cargo, similar activities are carried in reverse order. Since all the activities are integrally connected with each other, the work is assigned by the importer of the cargo to a single entity on principal to principal basis and charges for the activity are comprehensively decided on per MT basis.