2018 (8) TMI 1105 - AT - Service Tax

Classification of services - goods transport service provided by the appellant to M/s SECL - whether the services would fall within the scope of Mining Service or under the Transport of Goods by Road Service ? - Held that - The activity undertaken by them is purely of transportation of the coal and it is in no way related to mining of the coal - The matter is no longer res Integra as it has already been decided by the Hon ble Supreme Court in CCE & ST, Raipur V/s Singh Transporters 2017 (7) TMI 494 - SUPREME COURT , where it was held that a mine is not to be understood necessarily in respect of pit-heads of the mining area or the excavation or drilling underground, as may be, but also to the peripheral area on the surface - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Classification of services provided by the appellant as "Mining Service" or "Transport of Goods by Road Service" for Service Tax liability.

Detailed Analysis:
The appellant, registered with the Service Tax Department, provided services including "Mining Service", "Cargo Handling Service", Clearing and Forwarding Agency Service", and "Transport of Goods by Road Service". Central Excise officers, during an audit, contended that the goods transport service provided by the appellant to a specific entity falls under "Mining Service" from a certain date, contrary to the appellant's classification under "Transport of Goods by Road Service". Consequently, a show cause notice was issued demanding Service Tax along with penalties. The Adjudicating Authority upheld the charges, leading the appellant to appeal against the Order-in-Original issued on 30th September, 2013.

The appellant argued that their role was solely transporting coal within the mining area, emphasizing that it did not involve mining activities. They contended that the Adjudicating Authority erred in classifying their service under "Mining Service" without proper consideration, highlighting a Supreme Court decision supporting their stance.

The Tribunal, after hearing both sides, referenced a Supreme Court decision (CCE & ST, Raipur V/s Singh Transporters) where it was held that transporting coal within mining areas falls under "transport of goods by road service" and not "mining of mineral, oil or gas" service. The Tribunal found the facts of the present case similar to the Supreme Court decision and ruled in favor of the appellant, setting aside the Order-in-Original and allowing the appeal. The decision was based on the principle established in the Supreme Court case, leading to the conclusion that the appellant's services were correctly classified under "Transport of Goods by Road Service."