Custom, Excise & Service Tax Tribunal
M/S. Sarvmangla Construction Co vs C.C.E.&S.T., Raipur on 26 May, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST BLOCK NO.2, R.K. PURAM, NEW DELHI 110 066. Date of Hearing/Order : 26.05.2016 For Approval &Signature : Honble Mr. S.K. Mohanty, Member (Judicial) Honble Mr. R.K. Singh, Member (Technical) 1. Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? Yes 3. Whether Lordships wish to see the fair copy of the order? Seen 4. Whether order is to be circulated to the Department Authorities? Appeal No.ST/58490/2013-CU[DB] [Arising out of Order-in-Original No.Commr.RPR/ST/44/2013, dated 28.03.2013 passed by C.C.E.&S.T., Raipur] M/s. Sarvmangla Construction Co. Appellant Vs. C.C.E.&S.T., Raipur Respondent
Appeal Nos.ST/50916 & 50918/2014-CU[DB] [Arising out of Order-in-Original No.Commr.RPR/ST /97/2013, dated 30.09.2013 passed by C.C.E.&S.T., Raipur] M/s. Barbrik Project Ltd.
Mr. Bajrang Lal Agrawal Appellant Vs. C.C.E.&S.T., Raipur Respondent Appeal No.ST/51957/2014-CU[DB]
[Arising out of Order-in-Original No.Commr.RPR/ST/124/2013, dated 30.12.2013 passed by C.C.E.&S.T., Raipur] M/s. Madan Lal Agrawal Appellant Vs. C.C.E.&S.T., Raipur Respondent Appearance Ms. Rinky Arora, Advocate Mr. Ravi Holani, CA, Ms. Asmita Nayak, Advocate - For Appellant Ms. Suchitra Sharma, DR Mr. Amresh Jain, DR - For Respondent CORAM: Honble Mr. S.K. Mohanty, Member (Judicial) Honble Mr. R.K. Singh, Member (Technical) Final Order Nos.53110-53113/2016 dated 26.05.2016 Per Mr. S.K. Mohanty :
The appellants have filed these appeals against the impugned order dated 28.03.2013, 30.09.2013 and 30.12.2016, in terms of which service tax demands of Rs.99,67,511/-, Rs.1,25,19,002/- and Rs.60,00,588/- were confirmed along with interest and penalties on the ground that the activities undertaken by the appellants such as loading/unloading and transportation of coal from specified points by using tippers within the mining areas for and on behalf of principal M/s. South Eastern Coal Fields (SECL) is conforming to mining service, on which no service tax liability has been discharged by the appellants.
2. Ld. advocate for the appellants submits that pursuant to the work order placed by M/s. SECL, the appellants undertook the activity of handling of coal within the mining area, which is not conforming to the definition of mining service for payment of service tax. To support his view that the activity does not fall under the category of mining service, ld. advocate has relied on the decision of the Tribunal in the case of Arjuna Carriers Pvt. Ltd. Vs. CST, Raipur [2014-TIOL-3098-CESTAT-DEL]. Ld. advocate also submits that for transportation of service for movement of coal within the mining area, the principal, M/s. SECL has discharged the service tax liability under the category of GTA service as recipient of service in terms of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994.
3. Ld. Departmental Representative, on the other hand reiterated the findings recorded in the impugned orders.
4. Heard ld. counsels for both sides and examined the case records.
5. The short question involved in these appeals for consideration by this Tribunal is as to whether the service provided by the appellants for transportation of goods within the mining area is taxable under the category of mining service for payment of service tax. We find that the issue involved in this case is squarely covered by the decision of the Tribunal referred supra, wherein it has been held that mere handling of coal and movement of the same through the motor vehicles or any other means of transport would not constitute mining service for the purpose of levy of service tax.
6. In view of the above, we find that the impugned service not classifiable as mining service. The appeals are therefore allowed and the impugned orders are set aside.
(S.K. Mohanty) Member (Judicial) (R.K. Singh) Member (Technical) SSK -2-