TaxTMI 
TaxTMI 
2017 (9) TMI 1329
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....anadi Coal Fields Ltd. The contract involved the following works: NIT Nos. Nature of work 318,333 Extraction and transfer of Coal/Coal measure strata by deploying Surface Miners on hiring basis. 346, 001 & 005 Mechanical Transfer and Transportation of Coal for further processing within the mines. 316 Hiring of Pay Loaders for mechanical transfer of Coal into Wagons. For the above activities, the Department demanded Service Tax under the category of Cargo Handling Service as defined under Section 65 (23) of the Finance Act, 1994. For the period August, 2005 to December, 2006, after issuing show cause notice, service tax demand amounting to Rs. 64,04,447/- was confirmed against the appellant along with the order of interest a....
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....d. Counsel for the appellant also argues that the demand is time barred. 5. The Ld. A.R. justified the impugned order and argued that appellants are providing Cargo Handling services which are taxable and the appellants are liable for the amount in dispute. 6. The activity covered under Sl. No. (1) of the table of the previous page involves extraction of coal in the coal mines making use of machinery. Further, the scope of work also includes transfer of such coal to tippers for dumping inside the mines. We note that same activity has been held to be covered under Mining service which is leviable to Service Tax only w.e.f. 1/6/2007. Such a view has also been taken by the Commissioner (Appeal) for the earlier period vide his order dated 27/....
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.... which are merely incidental. Cargo in commercial parlance has a definite connotation which is carried as freight in a ship, plane, rail or truck and the activities undertaken by the appellants in terms of the contracts on behalf of M/s. MCL to move coal within mining area do not fall in the category of cargo handling service. Moreover, the activities undertaken are principally the transportation of coal within mining area and hence, the gross amounts received for the same cannot be taxed under the category of cargo handling service. We have, therefore, no hesitation in our mind to hold that the definition of cargo handling service under the Finance Act, 1994, does not include the kind of activities undertaken by the appellants and hence th....