TMI Blog2019 (4) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... nsportation of goods, and the charges, if any, for such services are included in the invoice issued by the Goods and Transport Agency and not by any other person. Such service would form part of Goods and Transport Agency Service and , therefore, the abatement of 75% would be available on it. Whether in the present case transportation is the main service and loading / unloading is ancillary service provided for successful completion of the main service? - Held that:- The cost of transportation charge is ₹ 41.65 per ton of limestone quantity delivered at a distance of 10.5 km. It is apparent that the essential feature of the service is transportation. Loading and unloading are ancillary / intermediate service provided in relation to transportation of goods, and such service would be Goods and Transport Agency Service. It cannot be ‘Cargo Handling service’ as was found by the Commissioner. It has been held by the Supreme Court in COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, RAIPUR VERSUS SINGH TRANSPORTERS [2017 (7) TMI 494 - SUPREME COURT] that transportation of coal from the pit-heads to the railway sidings within the mining area is more appropriately classified und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance to be paid to the persons engaged by you for the work shall be in accordance with the relevant statues in force. Any variation in the rates and allowance on the basis of living index or any change in the Statutes in regard to Contract Labour (R A) Act and CMPF shall also be applicable. 5) You shall be liable to abide by all the awards, regulations and laws as may be enforced from time to time in Coal mines in general and WCL in particular. 6) You should not engage contractual workers that is to say that you will employ your regular workers against whom PF and other statutory deductions are made as a proof of being on your roll. 7) Diesel escalation/de-escalation may be given/ recovered as per rules of the Company. 4. A show cause notice dated 16th April, 2008 was issued to the Appellants by invoking the extended period and demanded Service Tax under Section 73 of the Act with interest under Section 75 and penalties under Sections 76, 77 78 of the Act for the period commencing 16 August, 2002 upto 31 March, 2006. The relevant portion of the show cause notice is reproduced below: 2. Whereas, during the course of scrutiny of records, it has been noticed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made by the CBEC which clarifies that service tax has been levied under cargo handling on such services, which undertake the activities of packing, unpacking, loading, unloading of goods to be transported by any means of transportation. Thus, the services rendered by the Noticee is covered under Cargo Handling Service. 5(ii) In this case the coal are loaded into railway wagons by deployment of pay-loader and no motor vehicle is used hence these nature of activities appears entirely different with the service carried out mentioned in Sr. No. 1 of above. 5. The Appellants submitted a reply dated 15 September, 2008 to the aforesaid show cause notice. It primarily contended that loading was not a separate service but was integral to transportation and that the extended period of limitation could not be invoked. The Appellants also referred to various correspondences which Western Coalfields Ltd. had with different authorities of the Department to contend that the transportation was the main nature of work. The Adjudicating Authority, however, did not accept the contention of the Appellants and confirmed the demand. The appeal filed by the Appellants before the Commissioner was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsported is 1.20 lakh tonnes @ ₹ 41.65 per unit. Thus, it is a composite agreement both for hiring of Pay Loader and Tippers for loading and for transporting coal to a distance of 10.5 Kms. Clause 12 of the terms conditions also deals with diesel escalation/de-escalation which may be given as per rules of the company. A perusal of the agreement does indicate that the dominant nature of the work is for transportation of goods covering a distance of 10.5 Kms. Hiring of pay loader and tippers for loading for the purpose of transporting is only incidental. In fact, the unloading was by mechanical means. 13. Section 65A of the Act deals with Classification of Taxable Services and it reads as follows : (1) For the purposes of this chapter, classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65; (2) When for any reason , a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :- (a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intermediary or ancillary service? Clarification : GTA provides a service in relation to transportation of goods by road which is a single composite service. GTA also issues consignment note. The composite service may include various intermediate and ancillary services provided in relation to the principal service of the road transport of goods. Such intermediate and ancillary services may include services like loading/unloading, packing/unpacking, transshipment, temporary warehousing etc., which are provided in the course of transportation by road. These services are not provided as independent activities but are the means for successful provision of the principal service, namely, the transportation of goods by road. The contention that a single composite service should not be broken into its components and classified as separate services is a well-accepted principle of classification. As clarified earlier vide F.No. 334/4/2006-TRU, dated 28-2-2006 (para 3.2 and 3.3) [2006 (4) S.T.R. C30] and F. No. 334/1/2008-TRU, dated 29-2-2008 (para 3.2 and 3.3) [2008 (9) S.T.R. C61], a composite service, even if it consists of more than one service, should be treated as a single service ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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