2014 (11) TMI 829 - AT - Service Tax

Appellant's Appeal Dismissed for Cargo Handling Service in Precedent-Based Decision

TRIVENI COAL TRANSPORT PVT LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NAGPUR

TRIVENI COAL TRANSPORT PVT LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NAGPUR - TMI Issues:1. Whether the appellant's activity falls under cargo handling service or transport of goods by road service.Analysis:The appellant appealed against an order confirming a demand of Rs. 69,89,024 with interest and penalties for providing cargo handling service. The appellant argued that their work order for transporting coal and hiring pay loaders for loading and unloading should be considered transport of goods, not cargo handling. The Revenue cited precedents, including a decision by the Hon'ble Orissa High Court and a Tribunal decision, to support their position that the activity constituted cargo handling service. The Tribunal noted that the appellant's activities involved hiring equipment for loading coal from mines to a siding and loading coal into wagons, which the appellant claimed was transportation of goods. However, the Tribunal referenced Section 65(23) of the Finance Act defining cargo handling service, and previous judgments to conclude that the activity fell under cargo handling service, not transport of goods by road service.The Hon'ble Orissa High Court, in a similar case, held that activities such as hiring pay loaders for mechanical transfer within mining areas constituted taxable cargo handling service. The High Court upheld the demand by invoking the extended period of limitation. The Tribunal, relying on the Orissa High Court's decision, determined that activities akin to the appellant's fell under cargo handling service, as opposed to transportation of goods. Consequently, the Tribunal found no merit in the appeal and dismissed it.