2013 (6) TMI 809 - AT - Service Tax

Summary

Issues:
The issue involved in this case is whether the activity undertaken by the appellant falls under 'Cargo Handling Service' liable to service tax or under 'Goods Transport Agency Services'.

Comprehensive Details:

Issue 1: Classification of Service
The appellant, M/s. Khandelwal Earth Movers, was awarded work order by M/s. Western Coalfields Ltd. for the transportation of sand and coal within the mining area. The department contended that the activity falls under 'Cargo Handling Service' and issued a demand notice for service tax. The appellant argued that the activity should be classified under 'Goods Transport Agency Services' as the recipient of the service had already paid service tax. The Commissioner (AR) maintained that the nature of the service is 'Cargo Handling Service'. The Tribunal analyzed the nature of the activity, considering sand excavation as a mining activity and the recipient's discharge of service tax liability under 'Goods Transport Agency Service'. Referring to previous cases, the Tribunal concluded that the demand under 'Cargo Handling Service' was not sustainable in law.

Decision:
The Tribunal granted waiver from pre-deposit of the dues adjudged against the appellant and stayed the recovery during the appeal process.