Transportation of export cargo from CFS to Port of shipment - Demand of ST under BSS - Tribunal holds that transportation of export cargo cannot be classified under Business Support Service - Total waiver of pre-deposit and stay granted

CHENNAI: APPELLANT is a Container Freight Station (CFS) appointed by the Commissioner of Central Excise, Coimbatore. Adjudicating Authority confirmed demand of Service tax under Business Support Services for transportation of export cargo from CFS to Port of shipment. Appellant contended that since they are a CFS, all their activities are covered under cargo handling service and

that handling of export cargo is excluded from the purview of cargo handling service. Alternatively, Appellant contended that transport of cargo is covered under GTA services and service tax on GTA is chargeable under reverse charge basis on the recipient. Whereas, the department demanded service tax on transport of export cargo under Business Support Service.

The Tribunal observed that appellant is approved by Commence Ministry as CFS at Tiruppur and that Section 65 (23) of Finance Act, 1994, excludes handling of export cargo from Service Tax. Tribunal accordingly held that the activities relating to export cargo are not chargeable to service tax. Further, the Tribunal held that amount collected towards transportation to export cargo cannot be classified under Business Support Service as appellant is CFS Operator, handling both import and export cargo. Tribunal granted total waiver of pre-deposit and granted stay.