2018 (12) TMI 730 - AT - Service Tax

Coal Transportation: GTA Service, Not Mining. Tribunal Upholds Loading Tax, Sets Aside Transportation Demand.

The Tribunal clarified that coal transportation falls under goods transport agency (GTA) services, not mining services. It upheld the tax paid for loading ... Rectification of Mistake - Held that:- The dispute is only with regard to whether the activity of transport of the coal within the mining area will be classifiable under category of mining service or goods transport agency service. It is necessary to clarify that service tax amount paid by the appellant under agreement for loading of coal by classifying the same under mining service remains confirmed and appropriation of same by the original Adjudicating Authority is upheld. The final order No. 52632-52633 of 2018 dated 23rd July, 2018 is modified as required - ROM application allowed. Issues:Classification of service tax under mining service and goods transport agency service for coal transportation and loading agreements.Analysis:The appellant paid service tax under the mining service category for the period 2012-2013. The Revenue contended that a higher tax amount was payable for coal transportation and loading agreements. The Tribunal examined two separate agreements for loading and transportation, noting that the appellant paid tax under mining services for loading but disputed the tax for transportation. The Tribunal referenced a previous judgment and held that transportation falls under goods transport agency (GTA) services, not mining services. The demand was for the period when specific service classifications existed, but post-July 2012, no specific classification was needed due to the 'negative list regime'.The Tribunal, in its earlier order, found that transportation of coal falls under GTA services, not mining services. It clarified that transportation should not be bundled with mining activities, maintaining that coal transportation within the mining area is covered under GTA services. The Tribunal set aside the service tax demand, including the undisputed amount paid under mining services. The appellant did not dispute the tax paid under mining services, which was confirmed by the Tribunal.Upon review, the Tribunal acknowledged a mistake in its previous order regarding the classification of coal transportation under GTA services. It upheld the classification of transportation under GTA services but confirmed the tax paid for loading under mining services. The Tribunal modified its final order to clarify the confirmation of service tax paid for loading under mining services. The ROM application was allowed accordingly.In conclusion, the Tribunal clarified the classification of service tax for coal transportation and loading agreements, confirming the tax paid under mining services for loading while classifying transportation under GTA services. The final order was modified to uphold the tax payment for loading under mining services.