TaxTMI 
TaxTMI 
2019 (4) TMI 1418
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....ining area as per an agreement entered into with M/s. Tata Iron & Steel Limited (TISCO). The work performed by the appellants involved activity of transportation of the minerals from the mine's pithead to the railway siding (part of the mine) and loading the same into railway wagons. The authorities below have held that the appellants have provided cargo handling services, in terms of Section 65(23) read with Section 65(105)(zr) of the Finance Act, 1994 to M/s. TISCO and hence have demanded service tax on the gross amount received by the appellants on the activities of a) Trucking, Loading and Unloading of dolomite boulders from Mines to Crusher Plant; b)Hauling of dolomite from Stock Pile (loaded manually / with machines) to Sonakhan....
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....activity as transport of goods by road service as well as on the ground of limitation. 5. The ld. Consultant appearing on behalf of the assessee extensively referred to the contents of the agreement and also rate schedules of payment for various activities agreed upon, as per the said agreement. He stated that the activities as considered for cargo handling service by the department are part of the main activity of transportation of the minerals from the mine's pithead to the railway siding (part of the mine) and loading the same into railway wagons. He further stated that the activity carried out by the appellant was within the mining area and the goods transported within mining area cannot be called as cargo handling. This can be apprec....
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....ce is not done by appellant. As per their directions, contractors have to deploy machine in the respective areas and start drilling operation. Subsequently the blasting activity is done by TISCO supervisors and staff. Hence, the above activity cannot be classified as site formation services. As regards demand of Rs. 85,980/- under Maintenance and repair services, the Ld. Consultant has not pressed for the same. 7. The Ld. DR for the Revenue contends that the activity of the appellant to the extent of only Loading of dolomite into railway wagons calls for taxation under the "cargo handling services". The appellants are also engaged in stacking and further loading of the cargo in the railway wagons. This is not disputed. In such situation, ....
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....portation of goods." Section 65(105)(zr) defines 'taxable service' as under:- "taxable service" means any services provided or to be provided to any person, by acargo handling agency inrelation to cargo handling services." 11. We have examined the terms of agreement which is the basis of the activities carried out by the appellant. The agreement itself provides for detailed break-up of rates for each of the four activities to be undertaken by the appellant. A plain reading of these rate schedules will show that the essence of the contract is for transportation of mineral within the mining area. The Board vide circular dated 29-2-2008 clarified the application of Section 65A while classifying a composite service. It was clarified that s....
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....is loading and unloading is for transportation. Any person dealing with the situation perceives the services as one for transportation and not for loading and unloading. So on this count we are not in agreement with the argument of Revenue." 13. Also, this bench in COMMISSIONER OF SERVICE TAX, RANCHI Versus HEC LTD. 2018 (9) G.S.T.L. 403 (Tri. - Kolkata) on a similar issue has held that "The activities carried out by the assessee-respondents are primarily transportation of goods and loading & unloading, etc., which are incidental to the transportation of goods. Such activities cannot be covered within the services of 'Cargo Handling' as has been rightly held by the lower authorities." 14. The dominant activities undertaken by the appellan....