TaxTMI 
TaxTMI 
2019 (4) TMI 812
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....e Appellants are engaged in "Cargo Handling Services" and not "Goods Transport Agency Services" as contended by the Appellants. 3. To appreciate the rival contentions, it would be appropriate to refer to the relevant portion of the agreement dated 29/30 April, 2005 that was entered between the Appellants and Western Coalfields Ltd. and the same is reproduced below : "Description of work Qty. Rate/unit Amount Hiring of Pay Loader and Tippers for Loading and transporting of coal from 16/17 O.C. Ph-1 O.C. stock to Hirdagah siding including mech. unloading Dist. 10.5 KMs 1.20 Lakh tonnes Rs. 41.65 Rs. 4998000.00 In Words: Rupees forty nine lakhs ninety eight thousand only. TERMS AND CONDITIONS 1) Management reserves the right to increase/decrease the quantity as well as duration of the contract. 2) The period of the contract is fixed for Four months, from the actual start of work as per unit authority. 3) You shall be required to deploy adequate equipment for execution of the work duly provided with Audio-Visual Alarms as per safety norms. 4) The wages and allowance to be paid to the persons engaged by you for the work shall be in ....
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....pay loader and tipper for loading and transportation of coal from mines area to WCL railway siding including mechanical unloading; (ii) Hiring of pay-loader for loading of coal into wagons at different sidings of WCL; and (iii) Removal of all types of material in all kinds of strata by hiring of equipment such as HEMM, tipper, drillers and dozers including drilling in all kinds of strata, excavation, loading, transport and dumping, spreading and dozing at specified places. 5. The scope of the work carried out as per the aforesaid contract is discussed as under : 5(i) The noticee undertakes loading of coal into the tipper/dumper (motor vehicle) by deployment of pay-loader/backhoe, then transport and unload the same at different siding of M/s WCL. The unloading of coal was done through mechanical devices fitted in the tipper/dumper. All the necessary ingredients i.e loading, transportation and unloading of cargo are involved in the instant case as such these activities are covered under the ambit of definition of cargo handling service. In this context, it is relevant to point out that the clarification made by the CBEC which clarifies that service tax has been levied und....
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....-containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and cargo handling service incidental to freight; and (b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking, but does not include, handling of export cargo or passenger baggage or mere transportation of goods". 11. On the other hand, Section 65(50b) of the Act defines "Goods Transport Agency" to mean any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. 12. It is keeping in mind the aforesaid definitions that the terms of the agreement have to be examined. As noted above, the agreement dated 29th/30th April, 2005 between the Appellants and the Western Coalfields Limited deals with hiring of Pay Loader and Tippers for loading and transporting of coal from 16/17 O.C. Ph-1 stock to Hirdagarh Siding including mechanical unloading. The distance is also mentioned as 10.5 Kms. The quantity that has to be transported is 1.20 lakh tonnes @ Rs. 41.65 per unit. Thus, it is a compos....
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.... noticed by the Commissioner is that the cost of transportation is Rs. 41.65 per ton and the distance is 10.5 km. The work of loading and unloading is incidental to "transportation', which has also been clarified by Circular dated 6 August, 2008 issued by Government of India, Ministry of Finance, Department of Revenue in regard to Service tax levy on goods transport by road services. It would be pertinent to refer to paragraph 3, which is reproduced below: "3. Issue : GTA provides service to a person in relation to transportation of goods by road in a goods carriage. The service provided is a single composite service which may include various intermediary and ancillary services such as loading/unloading, packing/ unpacking, transshipment, temporary warehousing. For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In such a case, whether the intermediary or ancillary activities is to be treated as part of GTA service and the abatement should be extended to the charges for such intermediary or ancillary service? Clarification : GTA provides a service in....