2009 (1) TMI 147

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....- (a) The appellants had entered into a contract with Sanjay Gandhi Thermal Power Station, Birsinghpur for handling work relating to unloading of coal from rail wagons and discharging them to the conveyor belt through the track Hopper. The work also includes breaking and pushing of coal lumps of bigger size into track Hopper. This work was being handled within the premises of the power house. The contract envisages that the appellants engage sufficient labourers for timely completion of the work of unloading. (b) In this connection, a detailed work order has been given and the relevant portion reads as follows:- S. No. PARTICULARS QTY (MT) RATE (Rs./MT) VALUE OF CONTRACT (RUPEES) (A) Unloading of coal at Track ....

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....m of wagon, substantial quantity of coal automatically moves to the hoppers and discharged to the conveyor belt. The labour is involved in opening the gates and doors, breaking lumps of coal and shoveling the quantities of coal which do not automatically fall into the hopper for further being carried automatically by conveyor system. No handling by any labour is involved for further movement after discharge into the conveyor system. He submits that no motor vehicle is used for the purpose of transportation of coal by the appellants. 3.2 He relies on the decision of the Hon'ble High Court of Rajasthan in the case of S.B. Construction Company v. Union of India, reported in 2006 (4) S.T.R. 545 (Raj.) wherein the activities of the handli....

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....rvice" means loading, unloading, packing or unpacking of cargo and includes, - (a) cargo handling services provided for freight in special containers or for non-containerized 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. The definition of taxable service under Section 65(105)(zr) is reproduced below:- Section 65(105)(zr) of the Finance Act, 1994.- "taxable....

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....es when service relating to or in relation to handling of cargo is provided by a cargo handling agency irrespective of mode of transport used for movement of such cargo. Precisely, following activities which are contemplated to be taxed as cargo handling service are: (1) By express terms: (A) Loading, unloading, packing or unpacking of cargo; (2) By inclusion terms; (B) Handling service relating to cargo; (i) Provided for freight in special containers or for non-containerised freight; (ii) Provided by a container freight terminal or, by any other freight terminal; and (3) Cargo handling service provided which is incidental to freight." 5.4 However, the case of S.B. Construction Co. Hon'ble High Court of Rajasthan....