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2014 (9) TMI 676 - AT - Service TaxWaiver of pre-deposit - Cargo Handling Services - surface transport charges - Appellant contended that, they are engaged in mining of coal and the mined coal is sold on principle to principle basis to various customers, hence they are not a cargo handling agency as such no cargo handling service exists. - they contented that, surface transport charge though shown separately but it is part of the sale value of the coal. - Held that:- Even if it is accepted that the activity in question is of cargo handling service but since it is consumed captively in or in relation to manufacture and clearance of coal, it becomes part and partial of the manufacture and sale of coal. Tthe surface transportation charges, on which service tax demanded, has been shown in the invoices as part of the sale value of the coal and on the value including the surface transportation charges, the applicant has discharged the central excise duty as well as sales tax. This clearly establishes that the value including the surface transportation charges is the sale value of coal. It is now settled law by the Hon'ble Supreme Court in Bharat Sanchar Nigam Ltd's case [2006 (3) TMI 1 - Supreme court] that in respect of sale of goods no service tax is leviable. - prima facie strong case is in favor of assessee - stay granted.
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