TaxTMI 
TaxTMI 
.jpg)
In an adjudication, we have taken a stand that coal transported out of mining area to railway siding through public road, cannot be a mining service. It is a transportation (GTA) service being not confined to mining area and thereby, the consignee is liable to pay tax (with erstwhile abatement of 75%). I need case law(s) to support our argument. Can any one help me ?
Transportation of goods by road
13 Aug 2015 
4 Replies 
1784 Views Asked by
Transportation service liability: consignee must pay service tax on road transport of mined coal with abatement.
When coal is transported from a mine to a railway siding over a public road and the activity is not confined to the mining area, the movement is characterized as a Goods Transport Agency service rather than a mining service; the consignee is liable to pay service tax after applicable abatement. Issuance of consignment notes, contractual allocation of liability, and declarations that the transporter has not availed CENVAT credit on inputs, input services or capital goods are operative facts supporting the transportation-service treatment and the recipient's tax liability. (AI Summary)
When coal is transported from a mine to a railway siding over a public road and the activity is not confined to the mining area, the movement is characterized as a Goods Transport Agency service rather than a mining service; the consignee is liable to pay service tax after applicable abatement. Issuance of consignment notes, contractual allocation of liability, and declarations that the transporter has not availed CENVAT credit on inputs, input services or capital goods are operative facts supporting the transportation-service treatment and the recipient's tax liability. (AI Summary)