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April 2008

Cargo handing

By Puloma Dalal, Bakul B. Mody, Chartered Accountants
Reading Time 1 mins
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2. Cargo handing :


  • In this case, transportation activity was carried out, whereby coal was
    transported inside mine/ colliery and there was deployment of machines and
    tipper trucks for transport of coal from quarry beds to surface stocks/railway
    sidings. It was held that Mechanical transfer of coal from coal face to tippers
    and subsequent transportation within mining area not covered under cargo
    handling service. Movement of coal within mine area is dominant activity and
    loading and unloading merely incidental. Hence no Service Tax liability arises —
    Penalty not imposable as suppression or misstatement absent — Impugned order set
    aside — S. 65(23), S. 73 and S. 76 of the Act.
  •  Mechanical transfer of coal from coal face to tippers and subsequent
    transportation within mining area not covered under cargo handling service — S.
    65(23) and S. 65(105)(zr) of the Act.
  • Cargo in commercial parlance means one which is carried as freight in ship,
    plane, rail or truck.

[Sainik Mining & Allied Services Ltd. V. CCE, (2008)
9 STR 531 (Tri — Kolkata)]


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