2025 (8) TMI 2

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....either within the collieries or to a destination outside the colliery as also for other clients. 2.1 An audit was conducted and on the basis of audit, the show-cause notice 22.04.2014 was issued to the appellant demanding service tax for the period October,2008 to March, 2013 under the category of "Cargo Handling Service". 2.2 The appellant contested the show-cause notice, but the adjudicating authority confirmed the demand under "Cargo Handling Service". 2.3. Aggrieved from the said order, the appellant is before us. 3. The ld.Counsel for the appellant submits that the appellant has awarded a contract from M/s. ECL vide work order dated 20.12.2008 for the following work (as per the work order) - "Loading of coal into tipper by mechan....

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....ork was broken up into 4 (four) components later on - viz. i) Loading of crushed coal into tippers at Rajmahal, OCP by pay loader @ Rs.7.50 per MT, ii) Transportation of crushed coal from RJML, OCP to Pirpainti Rly. Sdg. By tipper @ Rs.139.75 per MT., iii) Breaking of coal into (-) 200 mm size by mechanical means @Rs.6.00 per MT and (iv) Loading of crushed coal into Railway wagons by Pay Loader and other allied works at the siding @ Rs. 21.00 per MT. subject to terms and condition as mentioned in the aforesaid work order." Therefore, the activity undertaken by the appellant is under "Cargo Handling Service" under Section 65 (23) of the Finance Act, 1994. He further submits that the appellant admitted the charge and deposited the service ta....

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....f material from wagon, cleaning of wagon & removing the material from railway track, heaping the same by the Loader at railway siding and release of wagons without any wharfage or demurrage and loading of trucks at siding, were incidental or ancilliary to the principal work of transportation of the material. 22. We find that after successful completion of the job and necessary certification by M/s. JSL, the Appellant raised invoices on M/s. SSTAPL for "Transportation and Unloading of Coal from Sukinda Railway Siding to JSL, KNIC". The Appellant did not issue any 'Consignment Note' in the name of the consignee M/s. JSL. After loading of the goods into the Rakes, 'Consignment notes' were issued by M/s SSATPL to M/s. JSL, th....

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....med by the Appellant in the Work orders. We observe that the charges are indicated separately only for the sake of convenience. This will not change the nature of service performed. In this regard, the Appellant relied on the decision in the case of Naresh Kumar & Co. Pvt. Ltd. v. Commissioner 2023 (6) TMI 304 - CESTAT Kolkata wherein it was held that: "The scope of the work order has to be read and interpreted in the context in which it has been awarded and the specification of separate rates for each sub- activity would not render each sub-activity to be a different taxable service. Therefore, separate rates for the various intermediate activities for carrying out this composite service have been provided in the work order. We therefor....