Post-mining transportation of iron ore not prima facie mining service, so pre-deposit was waived and recovery stayed.

Transportation of iron ore within and outside the mining area was treated as a post-mining activity rather than mining service, with reliance on a departmental circular stating that handling and transportation of minerals from the pithead to specified locations may be taxable, if at all, under the relevant service category. On the material before the Tribunal, the appellant established a prima facie case that the demand could not, at the pre-deposit stage, be treated as one for mining service. Waiver of pre-deposit was therefore granted and recovery was stayed for 180 days.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay pending appeal in relation to the demand treating the activity as mining service.

Analysis: The activity involved transportation of iron ore within and outside the mining area, which was treated as a post-mining activity rather than mining service. Reliance was placed on the departmental circular stating that handling and transportation of minerals from pithead to specified locations within or outside the mine are post-mining activities chargeable, if at all, under the relevant taxable services. On the material placed before it, the Tribunal found that the appellant had shown a prima facie case and that the service could not, at this stage, be regarded as mining service for the purpose of insisting on pre-deposit.

Conclusion: Waiver of pre-deposit was granted and stay of recovery was ordered for 180 days.

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