Transport of coal by tippers was treated as road transport, not mining or cargo handling service.

Loading coal by pay loaders, transporting it by tippers from the mining area to the railway siding, and unloading it was held to be transport of goods by road service, following the Supreme Court view that such movement from pitheads to sidings is not service in relation to mining of mineral, oil or gas. The definition of mines under the Mines Act, 1952 was found to have no nexus with the actual service rendered, so the activity could not be classified as mining service. On the same reasoning, it also did not constitute cargo handling service for the earlier period, and the demand was unsustainable.

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Issues: Whether the activity of loading coal into tippers, transporting it to the railway siding, and unloading it was classifiable as cargo handling service or mining service, or whether it was transport of goods by road service.

Analysis: The activity consisted of loading coal by pay loaders from the mining area, transporting it by tippers to the railway siding, and unloading it. The controlling legal position was taken from the Supreme Court ruling that such movement of coal from pitheads to railway sidings is more appropriately classifiable as transport of goods by road service and does not amount to service in relation to mining of mineral, oil or gas. The definition of mines under the Mines Act, 1952 was held to have no apparent nexus with the service actually rendered. On the same reasoning, the activity could not be treated as cargo handling service for the earlier period either.

Conclusion: The disputed activity was not cargo handling service or mining service, but transport of goods by road service; the demand could not be sustained.

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