2018 (8) TMI 1106 - AT - Service Tax

Valuation - inclusion of value of loading agreement into the value of mining agreement - Revenue has been of the view that the appellants are not paying service tax properly as the service value of both loading agreements and transportation agreement need to be included into the mining services value. Held that - The matter is no-longer res-integra in view of the decision of Hon ble Supreme Court in Singh Transporters 2017 (7) TMI 494 - SUPREME COURT for the demand period between 01/04/2012 to 31/06/2012, wherein the service akin to the one provided by the appellants to M/s South Eastern Coal Fields Ltd. have been found by Hon ble Supreme Court to be rightly classifiable under transport of goods by road service - demand set aside. So far as the demand from 01/07/2012 to 31/03/2013 is concerned, same has also been decided by this Tribunal in its final decision in the case of M/s H.N. Coal Transport Pvt. Ltd. and others vs. CCE & ST, Raipur 2018 (8) TMI 173 - CESTAT NEW DELHI in the similar cases, where it was held that wherein this Tribunal has found that since the service provided by the appellants within mining area has already been classified by Hon ble Supreme Court in Singh Transporters case even in the post negative regime w.e.f. 01/07/2012 the appellants are entitled for abatement on the value of services provided by them and since the service tax has already been paid by the service recipient after availment of the abatement and, therefore, no service tax liability remains with the appellant - demand set aside. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Interpretation of service tax liability on loading and transportation of coal in mining area for financial year 2012-2013.

Analysis:
The case involved four appeals with similar facts related to the service tax liability of loading and transportation of coal in the mining area for the financial year 2012-2013. The appellants were undertaking work under two agreements with M/s South Eastern Coal Fields Ltd.: Loading Agreement and Transportation Agreement. The Revenue contended that the appellants were not paying service tax properly as they were not including the value of both agreements in the mining services value for taxation purposes.

The appellants argued that the issue was settled by the judgment of the Hon’ble Supreme Court in the case of CCE & ST, Raipur vs. Singh Transports, where it was established that the services provided by the appellants were rightly classifiable under transport of goods by road service, and not under mining services. The Tribunal also referred to a recent decision in the case of H.N. Coal Transport Pvt. Ltd. which further supported the classification of the services provided by the appellants as transport of goods by road service.

The Tribunal, after considering the arguments and relevant decisions, concluded that the matter was no longer res-integra in view of the decisions of the Hon’ble Supreme Court and the Tribunal in similar cases. Therefore, the Tribunal set aside the order-in-originals and allowed the appeals, ruling in favor of the appellants.

This judgment clarifies the classification of services provided by the appellants in the mining area for the financial year 2012-2013, emphasizing that such services fall under the category of transport of goods by road service rather than mining services for the purpose of service tax liability.