2018 (6) TMI 1524 - AT - Service Tax

Classification of services - shifting of iron ore to the place where crusher was located and to load it - moving of the crushed ore from the crusher to the stacking area within the mines - classified under Cargo Handling Service or not? - Held that - The activity undertaken by the appellant and covered by both the contracts executed with RSMML, pertain to movement of mined ore to the crushing area where the ores are crushed for the purpose of concentrating. After the crushing, the minerals are further transported within the mines to a different area. It has been argued that the activity undertaken does not fall under the definition of Cargo Handling Service which essentially deals with loading, unloading and packing and unpacking of cargo - the classification of the activity under Cargo Handling Service is not proper. The matter is required to be remanded to the adjudicating authority to re-determine the classification and the levy of service tax - appeal is allowed by way of remand.

Summary

Issues:
Classification of services under 'Cargo Handling Service' for movement of minerals within mines area.

Analysis:
The appeal was against an order directing payment of service tax under 'Cargo Handling Service' for activities related to movement of minerals within a mine area. The appellant argued that the activities did not fall under this category as they involved movement within the mines, not loading or unloading of cargo. The appellant cited relevant case laws supporting their stance. The Tribunal noted that shifting minerals within mines may not classify as 'Cargo Handling Service' based on precedents. The Tribunal agreed with the appellant and remanded the matter to re-determine the classification and levy of service tax, if applicable, considering the cited Tribunal decisions. Consequently, the impugned order was set aside, and the appeal was allowed for remand.