SIGNODE INDIA LIMITED vs COMMR.OF CEN.EXCISE & CUSTOMS-II

The Supreme Court ruled that the appellant, Signode India Limited, is not liable to pay service tax for the period prior to June 16, 2005, as the services rendered were classified as 'packaging activity' under Section 65(76b) and not 'cargo handling service' under Section 65(23) of the Finance Act, 1994. The Court emphasized the legislative intent behind the amendments made by the Finance Act, 2005, which clearly delineated packaging activities from cargo handling services. Consequently, the Court upheld the decision of the Bangalore Bench of the Tribunal, affirming that the appellant was not liable for service tax during the disputed period.