TaxTMI 
TaxTMI 
2019 (6) TMI 512
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....ation of raw/waste coal from Piparwar to Bachra Siding. The appellant also entered into another agreement dt. 13/01/2005 as per which, they were required to carry out the job of extraction and transfer of Coal/Coal Measure Strata including parting thickness less than one meter, by deploying "Surface Miners". 3. After examining the agreements, the department was of the opinion that the appellant will be liable for payment of Service Tax for the agreement dt. 01/06/2004, under the category of "Cargo Handling Service" classifiable under Section 65 (23) of the Finance Act, 1994 (Act). For the work carried out on the basis of the agreement dt. 13/01/2005, the department was of the opinion that such activity will be liable for payment of Servi....
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.... he submitted that no liability for Service Tax will arise on the appellant. (ii) Activity carried out under the agreement dt. 13/01/2005, he submitted, was in the nature of mining. It involved extraction and transfer of coal and the same can only be classifiable under "mining" which became chargeable to Service Tax only w.e.f. 01/06/2007 as classifiable under Section 65 (105) (zzzy) of the Finance Act, 1994. The period of demand under this category was February 2005 to 24/03/2006. Since the period of demand is prior to the introduction of the mining service, no Service Tax liability will arise on the appellant. (iii) In this connection, he relied on the decision of the Tribunal in the case of Sainik Mining Allied Services....
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....Service Tax was introduced only w.e.f. 01/06/2007. Since the demand made in this case is prior to this date, no Service Tax liability will arise on the appellant. Similar Service has also been ordered for classification only under Mining in the decision of Sainik Mining Allied Services Ltd (Supra). 11. The observation of the Tribunal in the Sainik Mining Case case in respect of both the services under dispute in case are extracted below for ready reference:- "3. The appellant has carried out the following three types of work for M/s. Mahanadi Coal Fields Ltd. Nature of work (1) Extraction and transfer of Coal/Coal measure strata by deploying Surface Miners on hiring basis. (2) Mechanical Transfer and Tra....
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....as follows : "8. We find that the activity undertaken by both the appellants for mechanical transfer of coal from the coal face to tippers and subsequent transportation of the coal within the mining area, does not come under the purview of cargo handing service. The dominant activities undertaken by the appellants under the contract in question are primarily the movement of coal within mining area and transfer of coal from the coal face to the tippers, if at all, includes loading and unloading 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 t....