Excavation of sand treated as mining, not cargo handling; pre-deposit waived and recovery stayed prima facie.

Excavation of sand from river beds and its transportation to coalfields was treated as mining and allied transportation, not Cargo Handling Service. Because the service recipient had already discharged tax under Goods Transport Agency Service and earlier decisions had excluded excavation and movement within a mining area from cargo handling, the demand was found prima facie unsustainable. On that basis, waiver of pre-deposit and stay of recovery were granted.

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Issues: Whether the activity of excavation of sand from river beds and its transportation to the coalfields was prima facie classifiable as Cargo Handling Service, and whether the appellant was entitled to waiver of pre-deposit and stay of recovery.

Analysis: The activity involved excavation of sand, which is a minor mineral, from the river bed and its movement to the coalfields. On the facts, the essential nature of the work was mining and allied transportation, and not cargo handling. The Tribunal also noted that the service recipient had discharged tax under Goods Transport Agency Service. In view of the nature of the activity and the earlier decisions treating excavation and transportation within a mining area as outside Cargo Handling Service, the demand was found not sustainable prima facie.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery, and the classification under Cargo Handling Service was held to be prima facie unsustainable.

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