AI Drafter 
TaxTMI 
TaxTMI 
2024 (6) TMI 911
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..../- (under section 77 of the Act abid). 2. The appellant as a principal transport contractor of Tata Steel Ltd. (TISCO) was engaged in the transportation of Chrome Ore/Concentrate from Sukinda Chromite Mines to Jajpur Road Railway siding and was also required to provide for unloading and guarding of the said goods, yard management, inventory management and loading of the goods on to the railway wagons. Having obtained the Service Tax registration in June 2007, the appellant submits that they have filed the requisite ST-3 returns half yearly during the period October 2007 to March 2008. Enquiries initiated by the department revealed that the appellant was also engaged in the said transportation of Chrome Ore Concentrate including unloading the goods at Railway siding, as afore-stated, since 2005-2006. A perusal of the said work order reveals that for the afore- stated activities separate rates have been provided for and it appears that on account of the same, the authorities arrived at the conclusion that the services rendered by the appellant were classifiable under 'cargo handling service' and 'business auxiliary service', besides being classified under the 'goods transport agen....
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....tion are to be taken into account The guiding principle is to identify the essential features of the transaction. The method of invoicing does not alter the single composite nature of the service and classification enumerated in section 65A. Thus, if any ancillary/intermediate service is provided in relation to transportation of goods, and the charges, if any, for such services are included in the invoice issued by the GTA, and not by any other person, such service would form part of GTA service and, therefore, the abatement of 75% would be available on it." They thus submit that the billing/charging methodology would not be determinative of the nature of services rendered as single or multiple services. In the light thereof they submit that the indication of different rates of incidental services indicated separately in the work order placed by TISCO on the appellant goes in to hold that though the said contract is but a composite contract the argument forwarded therefore is that the department is precluded from taking the said stance, as by way of issuance of the show cause notice. 8. An extract of Profit & Loss Account statement and tax deposited as indicated in the ST-3 r....
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....tal quantity of material to be transported within the given time frame and the value of the work order indicated that the splitting up of the required work activities at the railway siding are merely indicative. 11. We also note that there is nothing in the impugned work order, so as to be suggestive of submissions of Bills by the appellant to TISCO, based on individual activities at the specified rates. 12. It may also be noted that the Board vide its Circular No.104/07/2008 dated 06.08.2008 with reference to concerns of India Motor Transport Congress had clarified in a case, wherein loading, unloading, packing, unpacking, transhipment, temporary warehousing etc. are all required to be taken into account for a single composite service. As such, though the various services are provided as independent activities, but are required for the accomplishment of the principal service of transportation of goods by road. The relevant extract of the said Circular is as under:- "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 a....
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....abatement of 75% would be available on it." 13. The appellant has further submitted that they have issued "consignment notes" to TISCO and therefore evidently the service rendered by them is in the nature of 'goods transport agency' (GTA) and the said service is a composite service including ancillary services like that of loading, unloading as pre-stated. We note that the TRU vide Circular No.186/15/2015-ST dated 05.10.2015 had clarified as under:- Levy on services of Goods Transport Agency Services (GTAs) - Clarifications Circular No. 186/5/2015-S.T., dated 5-10-2015 F.No. 354/98/20015-TRU Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Service Tax levy on services provided by a Goods Transport Agency - Reg. The All India Transport Welfare Association (AITWA) has represented regarding the difficulties being faced by the Goods Transport Agencies (GTAs) in respect of service tax levy on the services of goods transport. Doubts has been raised by the All India Motor Transport Congress (AIMTC) regarding treatment given to various services provided by GTAs in the course of transporta....
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....e GTA undertakes to reach/deliver the goods at destination within a stipulated time, should be considered as 'services of goods transport agency in relation to transportation of goods' for the purpose of Notification No. 26/2012-S.T., dated 20-6-2012, serial number 7, so long as (a) the entire transportation of goods is by road; and (b) the GTA issues a consignment note, by whatever name called. 6. Pending disputes on the above issues may accordingly be decided expeditiously. 7. Trade & field formations may be informed suitably. 8. Hindi version will follow. 14. In view of the aforesaid, we are of the firm opinion that the service rendered by the appellant would need to be considered as a 'GTA service' and not required to be categorized separately into 'cargo handling service' or 'business auxiliary service'. It be also noted that by its very nature 'cargo handling service' as defined under section 65 (23) refers to loading, unloading, packing or un-packing of cargo. While the inclusive definition thereof goes on to further elaborate, it is evident that transportation is not the essential character of 'cargo handling service'. Contrary to this in the p....
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.... held the activities of transportation, unloading at railway siding, stacking warehousing as part of 'GTA service' only. To similar ratio are several other decisions of this Tribunal. However, it would be sufficient to refer to this Tribunal's decision, in the case of Ace Construction Mines and Mineral Coop. Society v. C.C.E., Jaipur-II [2018 (9) G.S.T.L. 107 (Tri.-Del.] as was upheld by Apex Court in 2018 (16) G.S.T.L. J- 128 (S.C.)]. The Ld.AR Shri S.S.Chattopadhyay has however cited the case of Calcutta Industrial Supply Corpn. V. Commissioner S.T., Kolkata [2019 (31) G.S.T.L. 487 (Tri.-Kolkata)] in support of their stance as a Cargo Handling Service, however, that was a case of carriage of coal within mines with the help of payloaders etc. and not carriage of the mined product over long distances to railway sidings for removal from the mine pit. In the said case handling of cargo was a prominent activity and transportation within mines was merely incidental, while in the present case it is essentially carriage of mined ores etc. for purpose of loading onto railway wagons for onward movement. 18. In view of our findings above, we are of the view that the impugned order is not....
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....howing our order No. must be included in the packing and in addition to what is specified ause overeal an extra copy of this packing list quoting our order and R/R No. should be posted the & Steel Co. Ltd. Sukinda Attention Divisional Manager (P & S) Sukinda Mine in case is free ateral supply the scrap recovery is nil All correspondence must be adresse: to HEAD (In Bound Supply Chain) ORDER NDAMD/SPG/4275/5372011/F471 DATE 08/09/20057 This above must number be quoted on all correspondences Invoices, Bills and marked on all packages. QUOTATION REF DATE: IN LINE ORD. 3819/437 29/06/2005 STACK YARD AT SCM DESCRIPTION Transportation of Cr ore/concentrate? rom Sukinda Chromite Mine to Jajpur Road including wagon loading for four months at a total cost of Rs. JUNATITY : 2,00,000 Mt. HATE Value: Rs. 75000000.00 5 Sale Tax : No Sales Tax is payable by us. If any will be borne by you. Payment Term: Payment 95% on a/cpayment will be made within 7 days on a weekly basis on submission of your bill duly certified by Head (Mine) SCM 5% of the balance payament shall be released after the month %23 Complet....