TMI Blog2012 (9) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... of the coal for bringing the coal into washery fall under the category of cargo handling services - Held that:- As the appellant has entered into a contract with their customers for the purpose of beneficiation of coal, which would also include bringing the raw coal to their washery and supply the washed coal to their customers, thus it cannot be held that the appellant is cargo handling agency providing services to another person. Further, the said loading /unloading is required to be done by the appellant for himself. Such service is not being provided by him to any other person. The said activity is so integrally connected with the activity of beneficiation of coal that the same cannot be segregated and it cannot be held that the same wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance Act along with imposition of penalties under Section 75A, 76 and 77 of the Finance Act. 3. The said appeal was heard along with the appeal of M/s. Spectrum Coal wherein an identical issue was involved. Tribunal s vide its order No. ST/A/521/12 dated 5.7.2012 has referred to the earlier decision of the Tribunal in the case of Aryan Energy P. Ltd. [2009 (13) STR 42 (Tri)] and has held that the activity of beneficiation of washery and raw coal is activity of mining which was introduced for the purpose of Service Tax with effect from 1.6.07. As such, it was held that prior to the said period no Service Tax was leviable on beneficiation. For better appreciation, we reproduce relevant para of the said decision of the Tribunal in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that for the relevant period the activity carried out by the appellant would not be liable to service tax as mining service. Following the above decision of the Tribunal in the case of Aryan Energy P. Ltd., demand of duty in the case of M/s. Spectrum Coal and Power Ltd. was set aside. Inasmuch as the period involved in the present appeal is prior to 1.6.07 by following the earlier order, we hold that confirmation of Service Tax on the activity of beneficiation of coal was not liable to Service Tax during the relevant period. The demand accordingly, is set aside along with setting aside of penalty. 4. As regards confirmation of demand on the activity of cargo handling service, the appellants contention is that they are not engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to their washery, the same are required to be loaded by customers premises and transport the same and unloaded at washery. The loading and unloading charges stand claimed by the appellants separately from their customers. As per the appellants, the said activity is incidental activity which is required to be undertaken by them for bringing the coal to their washery. The same cannot be considered as independent activity inasmuch as they are not primarily engaged in the said activity and cannot be held to be cargo handling agency. The service tax is liable to be paid only when services are provided by cargo handling agency in relation to cargo handling services. The loading, transportation and unloading activity is being done by them by hir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be brought to the washery. This fact leads to the conclusion that coal is being brought by the appellant to washery for undertaking the job of beneficiation and such activity is for himself and not for any other person. It cannot be said that the appellant was providing service to its customers by bringing the raw material from its premises and by supplying the final washed coal to the customers. The said activity is so integrally connected with the activity of beneficiation of coal that the same cannot be segregated and it cannot be held that the same was a different and separate activity falling under the definition of cargo handling services inasmuch as neither the appellant can be called as cargo handling agency nor the services can be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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