R.K. TRANSPORT Vs. CCE

JUDGEMENT

(1.) HEARD both sides on the stay petition.

(2.) The Applicant has entered into contracts with M/s. Balco & M/s. Hindalco and undertaken series of activities like mining, sorting, breaking and stacking of bauxite ore. They, as per the same contracts, have also undertaken transportation of the bauxite from mines and delivered to the destinations specified by the clients. The Commissioner has held that the applicant has rendered 'Cargo Handling Service' for the above clients during the period from 16.8.2002 to 31.3.2006, and confirmed demand of service tax amounting to Rs. 11,54,31,297/ - and imposed equal amount of penalty under Section 78 in addition to penalties under other sections.

(3.) 1. The learned Advocate submits that the contract is for mining and transportation which is Rs. 586.61 per MT; the transportation services became taxable w.e.f. 1.1.2005; and the service tax on the transportation service stands paid on a value of Rs. 412 per MT, as against the total value of Rs. 586.61 per MT for both mining and transportation.