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TMI Blog2025 (3) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... ategory of "Mining Services" on the ground that the said services are provided within the Mines. However, going by the scope of works under the contract and applying the principles of classification set out under sections 65A and 66F of the Finance Act, 1994, it is observed that the said services cannot be taxed under the category of "Mining Services". It is clear that the services are appropriately classifiable under the category of "Transportation Services" on which the Appellant is not liable to pay Service Tax. Conclusion - The transport services are logistic services which are not understood as a mining activity in the common parlance. The activity of transportation is not understood as an activity in relation to mining of mineral, oi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant is liable to pay Service Tax of Rs.51,27,152/ on Transportation of Coal within the mining area with incidental loading, which is taxable under "Mining of Mineral, Oil or Gas Service" as defined under Section 65(105)(zzzy) of the Finance Act, 1994. 2.2. The said notice was adjudicated by the Ld. Commissioner by the impugned Order, wherein he has confirmed demand of Service Tax along with interest under the category of "Mining Services". He has also imposed equal amount of tax as penalty under Section 78 of the Finance Act, 1994. 2.3. Aggrieved against the confirmation of the demands, the Appellant has filed this appeal before the Tribunal. 3. The appellant submits that the activities of "Transportation within the mines" cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay High Court in the case of Indian National Shipowners Association Vs. Union of India reported in 2009 (14) S.T.R. 289 (Bom.) as upheld by the Hon'ble Apex Court in the case of Union of India Vs. Indian Shipowners Association reported in 2011 (21) S.T.R. 3 (S.C.), wherein it is held under Paragraphs 47 and 48 that Logistic Services provided in the mines cannot be treated as Mining Services as it has no direct and proximate relation to mining; the Hon'ble Court further held that the logistics services rendered in mines, like the one in hand, are either "pre mining" or "post mining" activities and not in relation to mining. 3.4. The appellant further contends that the "Transportation Services" provided by the appellant are most ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of "Mining Services". We observe that the ld. adjudicating authority has classified the said transportation services with incidental loading, and confirmed the demand, under the category of "Mining Services" on the ground that the said services are provided within the Mines. However, going by the scope of works under the contract and applying the principles of classification set out under sections 65A and 66F of the Finance Act, 1994, we observe that the said services cannot be taxed under the category of "Mining Services". It is clear that the services are appropriately classifiable under the category of "Transportation Services" on which the Appellant is not liable to pay Service Tax. 6.1. We observe that this view has been held by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period prior to 1st June, 2007 and the present case pertains to the post 1st June, 2007 period. The difference in time is relevant in view of the insertion of Section 65(105)(zzzy), extracted above, effective from 1st June, 2007. 6. Be that as it may, even if the relied upon judgment in the case of Arjuna Carriers (supra) is of no consequence to the present case, we are of the view 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 prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under 'Mining Service". We have perused the scope of works under all these contracts. We observe that the activity undertaken by the Appellant is mainly transportation of Coal, within the mining area and out side the mining area. The activity of transportation is most appropriately classifiable under "Goods Transport Agency Services" and the liability to pay Service Tax on the transportation service lies on the service receiver under the reverse charge mechanism. Accordingly, we hold that the transport services provided by the Appellant cannot be classified under the category of "Mining Services". We observe that this view has been taken by the Hon'ble Supreme Court in the case of CCE Vs. Singh Transporters reported in 2017 (4) G.S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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