TaxTMI 
TaxTMI 
2019 (7) TMI 826
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....Coal Fields Ltd. (SECL). M/s SECL had been paying service tax on reverse charge basis under the service tax category of Goods Transport Agency Service as the service provider being a proprietor concern. The department has entertained a view that the appellant have been providing a cargo handling service and mining service to the service recipient namely M/s SECL and, therefore, they are not entitled for the abatement which M/s SECL has claimed while discharging the service tax liability under the reverse charge basis under the category of Goods Transport Agency Service. As a consequence two show cause notices came to be issued to the appellant. The details of which are given here below :- Sl. No. Show cause Notice No. & Date Period involved Description Estimated cost/ amount (in Rs.) 1. V (ST) 15-125/Adj./JBP/2012 dated 19/10/2012 From 2007-2008 to 2011-2012 For providing Cargo handling service Mining Service Under Section 73 (1) excludes lime provision Section 75, 77, 76 and 78 7,85,336/- 2. V (ST) 15-82/ADJ/ JBP/2013 dated 17/10/2013 April 2012 to March 2013 For cargo handling service rather than GTA. Service under GTA is already paid by M/s SECL demand....
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....se charge mechanism under the taxable category of Transport of Goods by Road Service. The learned Advocate has taken us through the certificate which have been given by M/s SECL to the effect that the service tax has been paid by them on reverse charge mechanism basis under the category of GTA service. The learned Advocate has submitted that for period between 01/04/2007 to 30/06/2012, the activity of movement of coal within the mining area from pitheads to the dispatch point that is railway siding by trucks or other motor vehicles is classifiable under the goods transport agency service. The learned Advocate while assailing the order-in-appeal has relied upon the Hon'ble Apex Court decision in the case of Commissioner of Central Excise and Service Tax, Raipur vs. Singh Transporters cited under 2017 - TIOL - 249 - SC - ST, wherein it has been held that the transportation of coal from pitheads to railway sidings within the mining area is more appropriately classifiable under transport of goods by road service and does not involves any service in relation to mining of mineral, oil or gas. The learned Advocate has also cited various other decisions of this Tribunal, whereunder same vi....
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.... so far as show cause notice mentioned at Sl. No. (i) is concerned. Sl. No. Work Order No. & Date Description Estimated cost/ amount (in Rs.) 1. SECL/SO(M) SGP/NIT-216/7A/ 06/556 dated 15/11/2006 For the work of loading of coal into Tippers by Pay Loaders & Transportation of coal by Tippers from stockyard of Vishnupuri - I UGM to EDC Siding via bye-pass road including unloading 17,76,400/- 2. SECL/SO (M) SGP/NIT-297 7A/08 dated 03/01/2008 Work order for hiring of Tipper for Mechanical transfer of coal from Dhanpuri U.G. Mines to Burhar Siding 35,42,500/- 3. SECL/SO (M) SGP/N/7A/09/ 1020 dated 31/07/2008 Work Order for Hiring of Tipper for Mechanical transfer of Coal from Dhanpuri U.G. Mines to Burhar Siding 24,935/- 4. SECL/SO (M) SGP/N/7A/09/ 1408 dated 02/02/2009 Work order for Hiring of Tipper for Mechanical transfer of Coal from Dhanpuri U.G. Mines Qty. 4000 Tes. A 6.25 per tone (inclusive service tax) 25,000/- 5. SECL/DY GM/JOH/09/W-3/ 150 dated 29/07/2009 Work order for Hiring of pay Loader for Mechanical transfer of Coal into tippers at stock yard to Kanchan OCP and transportation to Nowrozabad OCP Wharf well siding 9,74,950/- ....
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....54,619/- 8. It can be seen from the work orders that primary nature of the work is loading and transportation of the coal from mining area to railway siding. From the plain reading of the work orders, we infer that the primary nature of the activity undertaken by the appellant for M/s SECL is for the transportation of the coal from the pit heads to the railway siding or within the mining area itself with related ancillary activity of loading and unloading of coal into dippers. The work relating to the loading and unloading is ancillary to the transportation work which has also been clarified by the CBEC vide its Circular dated 6 August 2008 wherein it has been mentioned that the composite service may include various intermediate and ancillary service provided in relation to the principle service of the road transport of goods. Such intermediate and ancillary service may include loading/ unloading, packing/unpacking, trans-shipment or temporary warehousing etc. These services are not provided as independent activities but are for the purpose of successful completion of the service of transportation of goods by road and, therefore, same is to be classifiable under GTA service. We, t....
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....f goods service and shall be entitled for abatement of value as provided in the relevant notification. The following decisions in this regard are worthy to be mentioned here :- (i) M/s H.N. Coal Transport Pvt. Ltd., M/s V.N. Transport Pvt. Ltd. vs. CCE & ST, Raipur, 2018 (8) TMI 173 - CESTAT New Delhi ; (ii) M/s Kanwal Coal Carriers Pvt. Ltd., M/s Gevra Coal Transport Pvt. Ltd. and M/s Shri Ganraj Coal Transport Pvt. Ltd. vs. CCE, Raipur (iii) M/s Joginder Coal Transport Pvt. Ltd., M/s Saksham Coal Carriers Pvt. Ltd., M/s Anupama Coal Carrier Pvt. Ltd. and M/s Nishant Coal Carrier Pvt. Ltd. vs. CCE & ST, Raipur, 2018 (8) TMI 1106 - CESTAT New Delhi 12. The issue has been discussed in detail in the case of M/s H.C. Coal Transport Pvt. Ltd., M/s V.N. Transport Pvt. Ltd. vs. CCE & ST, Raipur. In this Tribunal's final order No. 52632-52633 of 2018 dated 23 July 2018. The relevant extract of the same is reproduced here below :- "12. It is noted that the appellants have entered into two different agreements with SECL. SECL is a Public Sector Company and it is nobody's case that they have consciously and irregularly vivisected the activity and entered into two different contracts....