TMI Blog2007 (11) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... her for hearing and disposal. 2. Heard both sides. 3. In the case of Service Tax Appeal No. 25/06, the appellants, M/s. Sainik Mining Allied Services Ltd worked inside the mining area as per an agreement entered into with M/s. Mahanadi Coalfields Ltd. The work performed by appellants involved transportation of coal inside the colliery area and mechanical transfer of coal to Tippers at quarry face. The authorities below have held that the appellants have provided cargo handling services to M/s. Mahanadi Coalfields Ltd. and hence have demanded service tax on the gross amount received by the appellants. It is the contention of the appellants that the work undertaken by them does not fall in the category of cargo handling services. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal authority. 6. We note that in our earlier Order dated 10-8-07 in the case of M/s. ITW India Ltd. v. Commr. of Central Excise Customs, BBSR reported in 2007 (8) S.T.R. 490 (Tri.-Kol.), we had examined at length the scope of cargo handling service as well as the meaning of cargo. We find that in these two cases before us, both the appellants have executed work under a contract with M/s. Mahanadi Coalfields Ltd. for Service Tax Appeal Nos. 25 29/06 movement of coal within mining area. The agreement entered into by the appellants with M/s. Mahanadi Coalfields Ltd. reveals that the work performed by the appellants involved transportation of coal inside the colliery area and mechanical transfer of coal to Tippers at quarry f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is a misnomer, loading and unloading incidental thereto is necessarily inevitable. Moreover you load the coal onto your tipper either from coalface or from ground stock or from bunker or from CHP and upload the same at some similar point - this activity never involves loading onto or unloading from any ship/vessel/vehicle which conveys the coal from/to our own mining premises and therefore, the coal cannot stand in the same footing as that of cargo . This is to bring to your notice that right from the coal face to Railway siding everything in between (inclusive both) constitute mine as defined by the Mines Act. Something going out of mines by conveyance to end user or something coming into mines by conveyance from suppliers may constit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undertaken by the appellants under the contract in question are primarily the movement of coal within mining area and transfer of coal from the coal face to the tippers, if at all, includes loading and unloading which are merely incidental. Cargo in commercial parlance has a definite connotation which is carried as freight in a ship, plane, rail or truck and the activities undertaken by the appellants in terms of the contracts on behalf of M/s. MCL to move coal within mining area do not fall in the category of cargo handling service. Moreover, the activities undertaken are principally the transportation of coal within mining area and hence, the gross amounts received for the same cannot be taxed under the category of cargo handling service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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