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TMI Blog2019 (6) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... ELD THAT:- As per this agreement, the appellant was required to carry out the activity of extraction and transfer of coal, by deploying Surface Miners . From the description of the Service, it is evident that the Service provided is in the nature of mining. Mining as a separate category of service liable to Service Tax was introduced only w.e.f. 01/06/2007. Since the demand made in this case is prior to this date, no Service Tax liability will arise on the appellant. The transport of coal within the mine was held to be under GTA Service 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] . Appeal allowed - decided in favor of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 65 (19) of the Act since the activity is in the nature of production of coal on behalf of M/s. CCL. Show Cause Notice dt. 28/05/2007 was issued proposing the demand of Service Tax under the above two categories. 4. The Adjudicating Authority confirmed the demand of Service Tax as proposed in the Show Cause Notice by issue of the impugned order. This order is under challenge in the present proceeding. 5. The appellant s case is argued by Shri A. C. Tikadar, Ld. Authorized Consultant and Revenue is represented by Shri D. Haldar, Ld. DR. The arguments advanced on behalf of the appellants are summarized below:- (i) It was submitted that the activity carried out under the agreement dt. 01/0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Central Excise, Bhubaneswar reported in 2008 (09) STR 531 (Tri. Kolkata). He submitted that both the activities have been decided in the said decision in favour of the appellant. 6. Ld. DR however justified the order. 7. He submitted that it is not clear from the record whether transportation activity was carried out within the mining area. He also reiterated the views expressed by the Adjudicating Authority on the classification of the services. 8. We have heard both sides and perused the appeal record. 9. At the outset, we discuss the activity carried out under the agreement dt. 01/06/2004. As per this agreement, the appellant was required to carry out loading/unload ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) Extraction and transfer of Coal/Coal measure strata by deploying Surface Miners on hiring basis. (2) Mechanical Transfer and Transportation of Coal for further processing within the mines. (3) Hiring of Pay Loaders for mechanical transfer of Coal into Wagons. 6. The activity covered under Sl. No. (1) of the table of the previous page involves extraction of coal in the coal mines making use of machinery. Further, the scope of work also includes transfer of such coal to tippers for dumping inside the mines. We note that same activity h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n mining area and transfer of coal from the coal face to the tippers, if at all, includes loading and unloading which are merely incidental. Cargo in commercial parlance has a definite connotation which is carried as freight in a ship, plane, rail or truck and the activities undertaken by the appellants in terms of the contracts on behalf of M/s. MCL to move coal within mining area do not fall in the category of cargo handling service. Moreover, the activities undertaken are principally the transportation of coal within mining area and hence, the gross amounts received for the same cannot be taxed under the category of cargo handling service. We have, therefore, no hesitation in our mind to hold that the definition of cargo handling service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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