Clarification on service tax liability on fumigation service of export cargo

Department of Revenue has issued a clarification on tax liability of fumigation services on export cargo. On examination, the Department is of the opinion that the fumigation on export cargo including agricultural / horticultural produce, whether loaded into containers or otherwise, does not satisfy the definition of ‘cleaning activity’ under section 65 (24b) of the Finance Act, 1994. Notification No.41/2007-ST dated 06^th October, 2007 as amended by Notification No. 42/2007-ST dated 29^th November, 2007 exempted the specialized cleaning services of containers used for export of goods.

Notification No. 132/1/2011-ST dated 12^th January, 2011