Barge (Shipping charges) collected towards transportation of imported goods from mother vessel to jetty where the goods were unloaded forms part of the transaction value of imported goods for the purpose of levy of Customs Duty under section 14 of the Customs Act, 1962 read with Customs Valuation Rules, 2007. Hence the same cannot be said to be a service liable for service tax under the category of Cargo Handling Services. The question of rendering cargo handling service in respect of the goods can arise only after the customs transaction is completed.
Where the contracts with the customer showed separately the rates or charges for shipping of goods from mother vessel to jetty and the cargo handling charges, the transportation charges for shipping of goods cannot be included in the taxable value of cargo handling services.
The activity of transportation of goods along the coast would be classifiable for service tax under the category of coastal transportation of goods and not under the category of cargo handling services. Further since the goods transported were fertilisers, the same would be exempt from payment of service tax under Notification No. 30/2009-ST dated 31/8/2009. [United Shippers Ltd. vs. CCE (2015) 37 STR 1043 (Tri–Mumbai)].
Where the contracts with the customer showed separately the rates or charges for shipping of goods from mother vessel to jetty and the cargo handling charges, the transportation charges for shipping of goods cannot be included in the taxable value of cargo handling services.
The activity of transportation of goods along the coast would be classifiable for service tax under the category of coastal transportation of goods and not under the category of cargo handling services. Further since the goods transported were fertilisers, the same would be exempt from payment of service tax under Notification No. 30/2009-ST dated 31/8/2009. [United Shippers Ltd. vs. CCE (2015) 37 STR 1043 (Tri–Mumbai)].
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