TMI Blog2014 (9) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ST/89800/2013, ST/89814/2013, ST/898 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,26,30,418/- 6,26,30,418/- Total 51,50,94,470/- 51,50,94,470/- 2. The common facts in all these seven cases is that the Applicant are engaged in mining of coal and sale thereof to various buyers. Coal is sold at base price plus other charges such as surface transport charges plus statutory levies such as excise duty, sales tax/VAT, royalty etc. Show cause notices were issued to the Applicant proposing demand of service tax on surface transport charges under the head of Cargo Handling Services as contained in Section 65 (23) of the Finance Act, 1994 alleging that the said charges is on account of loading, unloading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms Service Tax, BBSR-I [2014 (33) S.T.R. 474 (Tri-Kolkata) and submits that the facts of this judgment is identical to their case. He also submits that the demand is time bar as there is no suppression of fact on their part. 4. The Ld. A.R. (Commissioner) appearing for the respondent reiterates the findings of the Adjudicating Authority. He also submits that the surface transport charge was collected by the Applicant for loading, unloading and transport of coal which activity is covered under the service of cargo handling service and the same attracts service tax. The Ld. Adjudicating Commissioner has thus correctly confirmed the demand of service tax and imposed penalties. He prayed to put the Applicant to terms of pre-deposit. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant 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 supra that in respect of sale of goods no service tax is leviable. 7. In case of sale of manufactured goods, even as per Section 4 of the Central Excise Act, 1944 and Central Excise Valuation Rules, 2000, the transaction value is the value which is charged for sale of the goods at the place of removal. In the present case if the coal is sold at pit head the price of the goods shall be the price at which the coal is sold at pit head. However in cases where the coal is sold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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