TMI Blog2022 (4) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... dispatch point of mines are activities carried out in relation to mining of minerals. This issue was examined by the Supreme Court in SINGH TRANSPORTERS VERSUS COMMISSIONER OF CENTRAL EXCISE, RAIPUR [ 2012 (7) TMI 566 - CESTAT, NEW DELHI] . The issue involved was whether coal transported from pitheads of the mines to the railway sidings would fall within the taxable service defined under section 65 (105) (zzzy) of the Act. The Supreme Court held that the activity would appropriately be classified under the head transport of goods by road service and the activity does not involve any service in relation to mining of mineral as contemplated under section 65(105) (zzzy) of the Act. The Supreme Court also held that the definition of mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the respondent did not pay service tax under the category of mining services contemplated under section 65(105)(zzzy) of the Finance Act, 1994 [ the Finance Act ]. This service was made taxable from June 01, 2007. 4. A show cause notice dated March 28, 2014 was issued to the respondent and the relevant portion of the show cause notice is reproduced below: 3 . On going through the documents submitted by the Noticee, it was noticed that though M/s WCL had awarded contracts to the Noticee for loading and transportation of goods in Wani and Mazri mines areas and the Service Tax was paid by M/s WCL for the said activities under the category of 'Goods Transport Agency Services', the Noticee had to pay Service Tax under ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (extracted in mines) within the mines premises for further processing such as washing, sizing and grinding and storage at appropriate place and further transferring and loading of coal into wagons in Railway Siding are activities in relation to Mining Service and accordingly, fall under the category of Mining Service under sub-clause (zzzy) of clause (105) of the Finance Act, 1994 and Service Tax is accordingly payable thereon . It, therefore, appears that with effect from 01.06.2007, such services of loading/unloading and transportation of coal in the mines (including transportation to the point of dispatch, i.e., railway siding) are classifiable under the Mining Service'. 22 . Now, therefore, M/s N.P. Earth Movers Pvt. Ltd. h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly to the show cause notice denying the allegations made against it and stated that the respondent was not providing mining services . The Commissioner accepted the contention of the respondent that the services provided by the respondent would not merit classification under mining services and, therefore, dropped the proceedings. 6. The Department in the Memorandum of Appeal, has emphasized that the activity carried out by the respondent is ancillary to or in relation to mining activity and, therefore, would merit classification under mining services . The said ground is reproduced below: 5.5 The Adjudicating Authority has erred by ignoring the fact that the activities of handling and transportation of coal had been undertaken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m one point of mines to dispatch point of mines are activities carried out in relation to mining of minerals. 10. This issue was examined by the Supreme Court in Singh Transporters vs. Commissioner of Central Excise, Raipur [ 2012 (27) STR 488 (Tril-Del.) ]. The issue involved was whether coal transported from pitheads of the mines to the railway sidings would fall within the taxable service defined under section 65 (105) (zzzy) of the Act. The Supreme Court held that the activity would appropriately be classified under the head transport of goods by road service and the activity does not involve any service in relation to mining of mineral as contemplated under section 65(105) (zzzy) of the Act. The Supreme Court also held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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