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TMI Blog2024 (12) TMI 1195X X X X Extracts X X X X X X X X Extracts X X X X ..... ening, crushing in the crushing plant and stacking at the mining site all are covered under the Mines Act, 1952, hence, cannot be called as Cargo Handling Service . The CBEC Circular No.232/2/2006 dated 12.11.2007 clarified that the services which are liable to tax under this category ( Cargo Handling Service ) are the services provided by cargo handling agencies who undertake the activity of packing, unpacking, loading and unloading of goods meant to be transported by any means of transportation namely truck, rail, ship or aircraft. Well known examples of cargo handling service are services provided in relation to cargo handling by the Container Corporation of India, Airport Authority of India, Inland Container Depot, Container Freight Stations. This is only an illustrative list. There are several other firms that are engaged in the business of cargo handling services. Thus, the activity rendered by the appellant to M/s.RSMML cannot be called as Cargo Handling Service . Otherwise also the Cargo Handling Services were made taxable w.e.f. 01.06.2007. The period in dispute/ period of demand is the period prior the said date (27.05.2005 to 12.04.2006). Hence, the demand has wrongly be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices to M/s. Rajasthan State Mines and Minerals Limited, Jaisalmer (hereinafter referred as M/s. RSMML), however, were not paying the service tax on the value of services received by them. Based on the said information the documents were required from M/s. RSMML. Appellant provided following documents vide letter dated 14.11.2008: (i) Copies of the contract and agreement for transportation of limestone from Sanu Mines to Jaisalmer Railway Station. (ii) Month-wise quantity of limestone transported. (iii) It was stated that since service tax on transportation had already been paid by M/s RSMML, M/s Shri Mohangarh Sharmik Theka Shakari Samiti Ltd., Jaisalmer had not paid any amount towards service tax. (iv) Details of payment made to M/s Shri Mohangarh Sharmik Theka Shakari Samiti Ltd., Jaisalmer for transportation, loading, unloading and watch ward during the period 27.5.2005 to 12.4.2006. (v) A copy of letter of intent dated 21.05.2005 was also provided by M/s. RSMML by their letter dated 28.11.2008. 2. From the perusal of all those documents, the Department observed that the appellants have raised the bills to M/s. RSMML wherein servicewise amount is shown against each service re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the mining area is actually an activity incidental to mining operation.The same has wrongly been alleged to be an activity of Cargo Handing Service and the Mining Services were made taxable w.e.f. 01.06.2007 onwards. Hence, the appellant is not liable to pay any tax for the period in dispute. Following decisions have been relied upon:- (i) Triveni Earthmovers Pvt. Ltd. vs. CCE 2009 (15) STR 393 (Trib.) upheld by SC at 2016 (45) STR J142 (SC). (ii) Sainik Mining Allied Services Ltd. vs. CCEST 2008 (9) STR 531 (Trib.) (iii) S.B. Construction Co. v.Union of India 2006 (4) STR 545 (Raj.). This decision was upheld by Hon ble Supreme Court at 2017 (52) STR J 19 (SC). Reliance is also placed on DC or CE vs. Sushil Co. 2016 (42) STR 625 (SC). 6. Finally, submitting about alleged suppression of facts, it is mentioned that the appellant was under bonafide belief of having no liability to pay service tax for the reasons explained above. Ld. Counsel impressed upon that bonafide belief cannot be categorized as suppression of facts. Triveni Earth Movers Pvt. Ltd. (supra) has been relied upon. The Show Cause Notice is therefore alleged to be barred by time. With these submissions the order unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling service‟ would extend ordinarily to what is commercially known as cargo carried as freight in a ship, airplane, rail or truck. As such, in our view, the activities undertaken by the respondents are primarily in the nature of mining activities comprising of excavation, transportation and feeding of iron ores to the crusher plant and even though these activities may incidentally involve some loading and unloading, the same cannot be covered under the category of cargo handling service‟ as what is carried cannot be commercially called cargo‟ in this case. 11. The CBEC Circular No.232/2/2006 dated 12.11.2007 clarified that the services which are liable to tax under this category ( Cargo Handling Service ) are the services provided by cargo handling agencies who undertake the activity of packing, unpacking, loading and unloading of goods meant to be transported by any means of transportation namely truck, rail, ship or aircraft. Well known examples of cargo handling service are services provided in relation to cargo handling by the Container Corporation of India, Airport Authority of India, Inland Container Depot, Container Freight Stations. This is only an illust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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