2017 (5) TMI 760 - AT - Service Tax

Cargo handling service - shifting of minerals from pithead to a specified area located within the mines and also removing over burden at mining sites to other location within mining area - the appellant have been paying service tax under mining services, which became taxable from 01.06.2007 - whether assessee is liable to pay for above service under the head cargo handling services or not? - Held that - the issue is no more res integra and is covered by the decision in the case of M/s. Thriveni Earthmovers Pvt. Ltd. Versus Commissioner of Central Excise, Salem 2009 (4) TMI 9 - CESTAT CHENNAI , where it was held that movement of limestone in the mining area will be covered by the entry of Mining of mineral, oil, gas service which cannot be taxed under Cargo Handling Service for the period prior to introduction of the levy under the category of mining w.e.f. 01.06.2007 - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Whether the activities of shifting minerals within a mining area and removing overburden are taxable under "cargo handling service" for the period prior to the introduction of the levy under the category of mining services from 01.06.2007.

Analysis:
The appellants, engaged in providing mining services and transportation activities within a mining area, were paying service tax under mining services from 01.06.2007. However, they were not paying service tax on activities like shifting minerals within the mining area and removing overburden. A Show Cause Notice was issued demanding service tax for these activities for the period before 01.06.2007, classifying them as "cargo handling service." The Tribunal heard arguments from both sides, where the appellant's counsel cited precedents to argue that movement of goods within a mining area does not fall under cargo handling service. The Tribunal noted that the issue was already settled in favor of the appellant by previous Tribunal decisions, which held that such activities within a mining area are covered under "mining of mineral, oil, gas service" and not taxable under cargo handling service before 01.06.2007. The Tribunal found the issue to be no longer res integra and ruled in favor of the appellant, setting aside the impugned order and allowing the appeal.

In conclusion, the Tribunal's judgment clarified that activities of shifting minerals within a mining area and removing overburden are not taxable under cargo handling service for the period before the introduction of the levy under the category of mining services from 01.06.2007. The decision was based on established precedents and the specific nature of the activities carried out by the appellant within the mining area.