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TMI Blog2018 (11) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... .2010 for the period April 2009 to March 2010 and Show Cause Notice dated 04.10.2011 for the period April, 2010 to March 2011 were issued on the ground that the appellants were doing loading, transport and unloading of coal from mining under the category of "Cargo Handling Services". Appeal No. Period involved Amount involved in OIA 1 2 3 Service Tax Appeal No.52638 of 2015 Jan, 2009 to March, 2009 Rs.10,37,093/- Service Tax Appeal No.52639 of 2015 April, 2010 to March, 2011 Rs.7,06,995/- 2. The basic issue before us for adjudication is that whether the department is correct in holding that the service provided by the above mentioned appellants falls under the category of cargo handling services as defined under section 65 (105 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above mentioned terms of the contract that rates which have been provided to the appellant is based on the distance for which transportation of the coal is to be undertaken by the service provider i.e. the appellant in these cases. The relevant prices as mentioned above is also subject to escalation of the transportation rates as per changes in the fuel price for the relevant period. This basically signifies that the rates are pre-dominantly for transportation of cargo rather than for handing of cargo. However, before proceeding further the relevant section 65 A of Finance Act, 1994 need to be looked into in detail for classification of the service rendered by the appellant. The provisions of section 65A provides as follows:- SECTION 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of loading/ unloading mechanically or otherwise is in our view, is only incidental to the activity of transportation of the cargo in these cases. 5. In view of the above, we hold that the service provided by the appellants have rightly been classified in the Goods Transportation Agency service. 6. We also feel that this issue has already been examined by the Hon'ble Supreme Court in their decision in the case of CCE & ST Raipur Vs Singh Transporters [(2017 (4) GSTL 3 (SC)] wherein the Hon'ble Supreme Court has held that activity undertaken by the assessee of transporting of coal from the pithead of the mines to railway siding is more appropriately classifiable under service head of Transport of Goods by road services. The relevant extrac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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