The applicant sends cotton for conversion into cotton yarn to their job worker. During such processing cotton waste is generated. The applicant sends packing material for collecting such waste which is collected and packed and bundled and kept by the job workers for sale as per instruction of the applicant. The company charges some consideration from the buyers of such waste billing it as "handling charges". Revenue was of the view that this activity was chargeable as "Cargo Handling Service" and on adjudication and after first appeal, a total tax amount is confirmed against the applicant.
Held:
It was held that the activity is done for appellant's own benefit and it is done within the factory, is out of the purview of Cargo Handling Service. Therefore, this appeal is admitted without any pre-deposit
M/s KG DENIM LTD Vs CCES -2013-TIOL-1656-CESTAT-MAD.
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