In-mine movement of limestone not treated as cargo handling at the interim stage, securing waiver of pre-deposit and recovery stay.

In-mine movement of unpacked limestone, involving loading, internal transportation and unloading within a limestone mining area, was treated as prima facie outside cargo handling service. The appellants relied on Tribunal rulings supporting that view, and the Revenue's circular was found inconsistent with those rulings at the interim stage. On that basis, the appellants established a sufficient case for waiver of pre-deposit and stay of recovery of the service tax demand and penalties, and interim relief was granted.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in respect of the service tax demand and penalties.

Analysis: The activities in dispute were undertaken within a limestone mining area and consisted of loading, transportation within the mining area, and unloading of limestone. The appellants relied on Tribunal decisions taking the view that such in-mine movement of unpacked limestone did not amount to cargo handling. The circular relied on by the Revenue was found, prima facie, to be inconsistent with the Tribunal's view. On that basis, the appellants established a sufficient case for interim relief.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellants.

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