Amount deposited by way of Handling Charges are not leviable to Service Tax: CESTAT rules in favour of Kajaria Ceramics

Handling Charges Not Liable to Service Tax: The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled in favor of Kajaria Ceramics, stating that handling charges collected separately for freight services are not subject to service tax. The tribunal emphasized that the nature of handling charges does not constitute a taxable service. This ruling clarifies that freight-related charges, when separately billed, do not attract service tax, providing relief to companies dealing with similar charges.