TMI Blog2014 (12) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... -original in paragraph 19.1.6 that the activities are undertaken from mine head to pit head and after 01.06.2007 the same is covered under mining activities. The only ground taken seems to be that the transportation is within the mining area. However learned counsel vehemently contested this and stated that the appellants were engaged in transportation of iron ore from mine head/pit head to the Railway sidings and the activity undertaken by them cannot be said to be within the mines. In any case the circular issued by the Board can lead to understanding and an interpretation that even for transportation within the mine or transportation from the mine to the railway sidings, mining service may not be the correct classification. It is well se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the service receiver became a partnership firm, the appellants informed the department that the service tax will be paid by service receiver due to change in constitution of the service receiver. Simultaneously appellants stopped paying service tax and the service receiver also submitted a letter undertaking to pay service tax on the services received from all the 5 appellants. The registration certificate issued to the service providers were also cancelled by the department. 3. The appellants are involved in transportation of iron ore from the mine head to pit head and to the Railway siding. The question involved is whether such an activity undertaken by these appellants is to be considered as part of mining service or the service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ystems, 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 . 6.1. The clarification is quite clear and in our opinion, when transportation activity is undertaken within the mine or from the mine outside the mine are to be classified under cargo handling service or goods transport by road pending upon the method adopted. However the Commissioner has interpreted it differently. He has observed in the order-in-original in paragraph 19.1.6 that the activities are undertaken from mine head to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f GTA service and such tax was paid till 2011 without any failure. When the service receiver became a partnership firm, the appellants promptly informed that the receiver started paying the tax and intimated the fact to the department. The actions of the service providers as well as the service receivers in this case in our opinion reflects the fact that they had a bona fide belief that they were implementing the statute correctly. On this ground, appellants can be said to have made out a prima facie case on limitation. 8. The above discussions would show that whether it is on limitation or on merits, appellants have been able to make out a prima facie case in their favour. In view of the above, the requirement of pre-deposit is waived a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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