CCE Vs. M/S. GAYATRI CARRIERS PVT. LTD.

JUDGEMENT

(1.) THIS is an appeal filed by Revenue against Order in Appeal No. 44(ST)/RPR -I/2012 dated 06.09.2012. The facts of the case are that M/s. Gayatri Carriers Pvt. Ltd. (hereinafter referred to as respondent) are engaged in providing mining services to South Eastern Coalfield Ltd. (SECL) and received payment from services rendered to SECL. Respondent got registered with the department under mining service and are paying service tax with effect from 01.06.2007. Department felt that activity of handling coal prior to 01.06.2007 was covered under cargo handling service and accordingly a Show Cause Notice dated. 13.04.2011 demanding service tax amounting to Rs. 24,16,946/ - along with interest and also proposing penalties was issued to respondent.

(2.) After due process Show Cause Notice was adjudicated vide Order in Original No. 84/2011 dated 14.09.2011 confirming service tax along with interest and imposing penalties under Section 76 and 78 of the Act. Respondent preferred an appeal before Commissioner (Appeal) who vide impugned order allowed their appeal after setting aside the Order in Original. Revenue has challenged the impugned order in the present appeal.

(3.) SHRI A.K. Batra Ld. Consultant appearing for respondent submits that respondent are providing mining service in form of mechanical loading of coal at coal face inside the mines of SECL with the help of their pay -loaders and these activities comprise coal cutting or mineral extraction and lifting them up to pithead as explained in clause 4 of the Board Circular 232/2/2006 CX dated 12.11.2007. He submits that these activities are covered under mining service with effect from 01.06.2007. He submits that Commissioner (Appeal) after relying on the decision in case of S.B. Construction : 2006 (4) STR 545 (Raj.), Gayatri Construction in : 2012 (25) STR 259 (Tri.) and Anupama Coal Carriers Pvt. Ltd. Final Order ST/A/143 -154/2012/CU (DB) dated 06.03.2012 has rightly allowed their appeal.