TMI Blog2018 (11) TMI 1755X X X X Extracts X X X X X X X X Extracts X X X X ..... ring an average distance of 119 Kms. Hiring of pay loader and tippers for loading as Watch and Ward services for the purpose of transporting is only incidental. In fact, the unloading was by mechanical means. The cost of transportation is ₹ 121.35 per ton and the distance is 119 km. The work of loading and unloading watch and ward of cargo is incidental to transportation , which has also been clarified by Circular dated 6 August, 2008 issued by Government of India, Ministry of Finance, Department of Revenue in regard to Service tax levy on goods transport by road services. 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 ₹ 121.35 per ton of limestone quantity delivered at an average distance of 119 km. It is apparent that the essential feature of the service is transportation. Loading and unloading, watch and ward etc. are ancillary service provided in relation to transportation of goods, and such service would be Goods and Transport Agency Service - On the similar issue the Hon ble Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been made by the appellant. 3. The appellant have entered into an agreement on 18 January, 2007 with M/s. Rajasthan State Metals and Minerals Ltd. for undertaking the work of loading of limestone gitti of various sizes into tipper / dumpers from the mining site at Sanu Limestone Mines in District Jaisalmer and transportation of same from the mining area to Railway sidings Jaisalmer and after unloading of gittis from the tipper / dumpers, the appellant was required to do stacking of the gitti and undertake watch and ward services of product from any theft or pilferage till the cargo is loaded to the railway wagon at Jaisalmer railway station. All the details of the contract are reproduced for the sake of convenience: The said agreement was executed in pursuance of letter of Intent no. RSMM/CO/GCM (Cont)/Cont29/ 2005-06 dated 01.04.06 and subsequent detailed letter of Intnt no. RSMM/CO/GCM Cont.29/2006/132 dated 15.05.2006. The above mentioned work was divided under four headings for the purpose of execution of work as detailed below:- a) Loading of limestone gitti from various stacks by loaders into Tippers / Dumpers at company s Sanu Limestone Mines Distt. Jaisal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment towards service tax on these activities. However, in case, tax is applicable on the activities performed by them, they would charge the same from RSMML and deposit the same with Govt. as in their contract with RSMML very clearly stated that service tax if applicable have to be reimbursed by RSMML. Whereas, as per the detailed letter of intent No. RSML/CO/GGM( C) /Cont 29/2006 132 dated 15.5.2006 the rates and scope of work described their in is reproduced below:- (1) Rate: Serial No. Description Rs. per MT (in figure) A Loading of limestone gitti from various stacks by loaders into tippers/ dumpers at Company s Sanu Limestone Mines, Distt. Jaisalmer 4.00 B Transportation of limestone gitti loaded in Tippers /Dumpers from Sanu limestone Mines, distt Jaisalmer to specified Rly. Plots at Jaisalmer railway station including unloading of Tippers /dumpers at Railway plots / land in possession of the company. 121.35* C Stacking and watch and ward of the tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follows : 65(23) - cargo handling service means loading, unloading, packing or unpacking of cargo and includes: (a) cargo handling services provided for freight in special containers or for non-containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and cargo handling service incidental to freight; and (b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking, but does not include, handling of export cargo or passenger baggage or mere transportation of goods . 8. On the other hand, Section 65(50b) of the Act defines Goods Transport Agency to mean any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. 9. Keeping in mind the aforesaid definitions, the terms of the agreement have to be examined. As noted above, the agreement dated 29th/30th April, 2005 between the Appellants and M/s. Rajasthan State Mines and Minerals Ltd. deals with hiring of Pay Loader and Tippers for loading and transporting of stone gitti from Mining A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of a combination of different services, it shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable. 12. What we find from the record and what has also been noticed by the Commissioner is that the cost of transportation is ₹ 121.35 per ton and the distance is 119 km. The work of loading and unloading watch and ward of cargo is incidental to transportation , which has also been clarified by Circular dated 6 August, 2008 issued by Government of India, Ministry of Finance, Department of Revenue in regard to Service tax levy on goods transport by road services. It would be pertinent to refer to paragraph 3, which is reproduced below: 3. Issue : GTA provides service to a person in relation to transportation of goods by road in a goods carriage. The service provided is a single composite service which may include various intermediary and ancillary services such as loading/unloading, packing/ unpacking, transshipment, temporary warehousing. For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of interm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transportation of goods by road. These services are not provided as independent activity but as means of successful implementation of the principal service, namely the transportation of goods by road. It has, therefore, been clarified that a composite service even if it consists of more than one service, should be treated as a single service based on the main or principal service. It has, therefore, been held that any ancillary / intermediate service provided in relation to transportation 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. It has, therefore, to be seen whether in the present case transportation is the main service and loading / unloading is ancillary service provided for successful completion of the main service. The cost of transportation charge is ₹ 121.35 per ton of limestone quantity delivered at an average distance of 119 km. It is apparent that the essential feature of the service is transportation. Loading and unloading, watc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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