Khanduja Coal Transport Co. Versus CGST C.C & C. E-Jabalpur
Service Tax
2019 (1) TMI 322 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 4-12-2018
Appeal No. ST\/50294\/2016-CUS (DB) – ST\/A\/53422\/2018-CU[DB]
Service Tax
Mr. Anil Choudhary, Member (Judicial) And Mr. C.L. Mahar, Member (Technical)
\nShri H. Bansal, Advocate for the appellant
\nShri G.R. Singh, DR for the respondent
\nORDER
\nPer: C.L. Mahar
\n1. The brief facts of the matter are that the appellant is engaged in Goods Transporter Agency Service and for which they are duly registered with Service Tax Department. As per the various agreements entered by the appellant with M\/s Western Coal Field Ltd. the appellant has been provided work contract for transportation of coal from mining area either to washery or to the railway siding by employing tippers and trucks for this purposes. The scope of work included loading of the coal from mining area to the washery or to the railway siding, transportation t<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n hed Commissioner (Appeal) who has detoed the order of Joint Commissioner vide his order dated 30st November 2015 and now the appellant is before us against the above mention Order-in-Appeal. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Coal from Takia Nallah OC Stock yard to Hiragarh Siding, Kanhan Area. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s which equally merit consideration.] = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Khanduja Coal Transport Co. Versus CGST C.C & C. E-JabalpurService Tax2019 (1) TMI 322 – CESTAT NEW DELHI – TMICESTAT NEW DELHI – ATDated:- 4-12-2018Appeal No. ST\/50294\/2016-CUS (DB) – ST\/A\/53422\/2018-CU[DB]Service TaxMr. Anil Choudhary, Member (Judicial) And Mr. C.L. Mahar, Member (Technical) Shri H. Bansal, Advocate for the appellant Shri G.R. Singh, DR for the respondent … Continue reading “Khanduja Coal Transport Co. Versus CGST C.C & C. E-Jabalpur”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-16042","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16042"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16042\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n2. The basic issue before us for adjudication is that whether the department is correct in holding a view that the service provided by the above mentioned appellants falls under the category of cargo handling services as defined under section 65 (105) (zr) read with section 105 (23) of the Finance Act, 1994 or whether the service tax has correctly been paid by recipient of the service under Goods Transportation Agency service on reverse charge basis. In this regard, it will be appropriate to have a look at the sample contracts which the appellant has entered with the service recipient, namely, M\/s W.C.F. Ltd.
\nLOA No. WCL\/KAN\/SO(M)\/P 175\/2012-985 dated 6.01.2013
\nDescription of work
\nQty
\nRate\/Unit
\nAmount(Rs)
\nJOB No.1)
\nTransportation of coal form Bunker of Tandsi, mines to Nandan Washery by hir<\/p>\n
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\nMinimum Daily rate of transportation 1000 Tonnes. Distance: 12.7 KMs.
\n0.80 Lakh Tonnes
\nRs.62.40
\nRs.4999200.00
\n(Rupee Forty Nine Lakhs Ninety Nine Thousand Two Hundred only)
\n3. It can be seen from 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 <\/p>\n
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\n4. It can be seen from a plain reading of 65A (2)(b) that the classification in the case of combined service is to be decided by analyzing the fact as to which service gives essential character to the service being performed. As can be seen from the above contract that the essential character of the service for which contract has been entered by the service provider is that the service received are for transportation of coal for mining area to the railway siding and the activity of loading\/ unloading mechanically or otherwise is in our view, is only incidental to the activity of transportation of the cargo in these cases.
\n5. In view of the above, we hold that the service provided by the appellants have rightly been classified in the Goods Transportation Agency service.
\n6. 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 (S<\/p>\n
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