2023 (7) TMI 1063 - AT - Service Tax

Classification of services - transportation of goods by road service or not - transporting mined ore from the top to the bottom i.e. mine head to pit head and to the Railway siding situated within the mines area - period October 2007 to March 2011 - HELD THAT - The issue of levy of service tax on providing services for transportation of ore within the mining area for the period post-01/06/2007, after the introduction of the levy viz. Mining of Minerals, Oil or Gas services, has been settled by the Hon ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, RAIPUR VERSUS SINGH TRANSPORTERS 2017 (7) TMI 494 - SUPREME COURT where it was held that the activity undertaken by the respondent i.e. transportation of coal from the pit-heads to the railway sidings within the mining areas is more appropriately classifiable under Section 65(105)(zzp) of the Act, namely, under the head transport of goods by road service and does not involve any service in relation to mining of mineral, oil or gas as provided by Section 65(105)(zzzy) of the Act. The principle laid down by the Hon ble Supreme Court is squarely applicable to the facts of the present case. Consequently, the impugned orders are set aside - appeal allowed.

Summary

Issues involved:
The issue involved in this case is the levy of service tax on providing services for transportation of ore within the mining area post-01/06/2007 under the category of 'Mining of Minerals, Oil or Gas Services'.

Summary:
In this case, five appeals were filed against the Orders-in-Original passed by the Commissioner of Central Excise, Customs and Service Tax, Belgaum. The common issue in all appeals was the rendering of services to a company for transporting mined ore within a mining area, leading to the imposition of service tax. The appellants argued that the issue had been settled by a judgment of the Hon'ble Supreme Court in a similar case. The Tribunal found merit in the appellants' contention, citing the Supreme Court's judgment and a recent decision by the Principal Bench of CESTAT at Delhi. The Tribunal held that the transportation of ore within the mining area should be classified under "transport of goods by road service" rather than under "mining of mineral, oil or gas services." As a result, the impugned orders were set aside, and the appeals were allowed with consequential relief as per law.

Separate Judgment:
No separate judgment was delivered by the judges in this case.