2008 (1) TMI 131 - AT - Service Tax

Impugned activities regarding transportation of coal within the mining area are not covered by the category of cargo handling service for the impugned period - lower Appellate Authority has held that the activities undertaken by the respondents for the impugned period do not attract levy of Service Tax under the category of cargo handling services revenue appeal dismissed

Summary

Issues Involved:
1. Valid authorization for Department's appeals
2. Tax liability under cargo handling services

Analysis:

Issue 1: Valid authorization for Department's appeals
The Tribunal considered the preliminary objection raised by the respondents regarding the validity of the Department's appeals. The learned Advocate for the respondents argued that the Department's appeals were filed without proper authorization. However, the Tribunal rejected this contention after the learned S.D.R. produced a copy of Notification No. 41/2007, which authorized the Commissioner of Central Excise, Ranchi to review orders passed by the Commissioner (Appeals), Bhubaneswar-II. With the consent of both sides, the Tribunal proceeded to hear and decide the appeals on merit.

Issue 2: Tax liability under cargo handling services
The respondents contended that their activities were similar to those in a previous case decided by the Tribunal, where it was held that the transportation of coal within the mining area did not fall under the category of cargo handling services. The lower Appellate Authority also ruled in favor of the respondents, stating that their activities did not attract Service Tax under cargo handling services. The Department filed appeals against this decision, but the Tribunal, considering the similarity of issues with the previous case and the absence of any contrary decision from a higher court, followed the ratio of the earlier order. Consequently, the Tribunal rejected both appeals filed by the Department.

In conclusion, the Tribunal upheld the lower Appellate Authority's decision, ruling that the activities of the respondents were not subject to tax under cargo handling services. The Tribunal's decision was based on the precedent set by a previous case and the absence of any contradictory decisions from higher courts.