Transport within mine

[Rajeev Kedia]

Is transport of ROM(Run of Mines), Lump etc, within mines from pit to screening/crushing plant attract cargo handling services or GTA. 

[NEERAJ KUMAR, RANCHI]

In my opinion it comes under Mining Services. You can refer Thriveni Earthmovers V CCE (2009 (4) TMI 9 - CESTAT CHENNA)= (2009)21 STT 301 (CESTAT)

[YAGAY and SUN]

Handling and transportation of coal/mineral from pithead to a specified location within the mine/factory or for transportation outside the mine:

These activities are post-mining activities and are chargeable to service tax under the relevant taxable services, i.e. “Cargo Handling service” and “Goods Transport by Road”.

However, in case, such transportation is undertaken by mechanical systems, such as conveyor belt system, ropeway system, merry-go-round systems etc., and the same is not transported by road, no service tax would be chargeable. Service tax, is however, chargeable under cargo handling service, even if the loading, unloading and similar activities are done using mechanical systems.

6. The above are the general guidelines for settlement of pending disputes. These should be applied to individual cases keeping in view the facts and circumstances of each case.

[Based on CBEC letter F.No. 232/2/2006-CX.4, dated 12.11.2007-2007 (8) S.T.R. (C15)].

AI Summary

Transport classification within mines may attract cargo handling or goods transport service tax unless moved by mechanical systems.
Handling and transportation of extracted material from pithead to plant are treated either as Mining Services or as post mining activities chargeable under Cargo Handling Service and Goods Transport by Road. Movement exclusively by mechanical systems (conveyor belts, ropeways, merry go round) that does not involve road transport is not subject to service tax on the transport element; nonetheless cargo handling remains taxable for loading, unloading and similar activities even when mechanical systems are used.