Transport within mine, Service Tax

[Rajeev Kedia]

Is transport of ROM(Run of Mines), Lump etc, within mines from pit to screening/crushing plant attract cargo handling services or GTA. 

Posts / Replies

[NEERAJ KUMAR, RANCHI]

In my opinion it comes under Mining Services. You can refer Thriveni Earthmovers V CCE (2009 (4) TMI 9 - CESTAT CHENNA)= (2009)21 STT 301 (CESTAT)

[Pradeep Khatri]

Handling and transportation of coal/mineral from pithead to a specified location within the mine/factory or for transportation outside the mine:

These activities are post-mining activities and are chargeable to service tax under the relevant taxable services, i.e. “Cargo Handling service” and “Goods Transport by Road”.

However, in case, such transportation is undertaken by mechanical systems, such as conveyor belt system, ropeway system, merry-go-round systems etc., and the same is not transported by road, no service tax would be chargeable. Service tax, is however, chargeable under cargo handling service, even if the loading, unloading and similar activities are done using mechanical systems.

6. The above are the general guidelines for settlement of pending disputes. These should be applied to individual cases keeping in view the facts and circumstances of each case.

[Based on CBEC letter F.No. 232/2/2006-CX.4, dated 12.11.2007-2007 (8) S.T.R. (C15)].