date – 24 November 2022

Key Pointers –

• The Petitioner, GTS Coal Sales, is engaged in the business of Material management and as a Transport Contractor and has carried out the works which is either classifiable as ‘GTA Services’ leviable to tax under the GST regime @ 12%, or ‘Support Services’ relating to mining leviable to tax @ 18% and The Petitioner, M/s. Sanjay Udyog Pvt. Ltd is engaged in the business of Transport of Coal and other related works for which petitioner participated in notice inviting tenders (NITs) issued by Bharat Coking Coal Limited (BCCL) and Northen Coalfields Limited (NCL); both the companies being subsidiaries of Coal India Limited.
• A search was carried out in the office premises of the petitioners and as alleged, upon threat of coercion, the petitioner involuntarily deposited an amount under protest purportedly under Section 73 (5) of the Act.
• The petitioners prayed for a declaration, that the works executed by the respective petitioners pursuant to the work orders given by the Coal Companies should be classified under Chapter Heading No. 9965 of Tariff Rules i.e., ‘Goods Transport Agency Services’, leviable to tax @ 12%; as against its classification under Chapter Heading No. 9986, being ‘Support Services to Mining’ which is leviable to tax @ 18%.
• The issue involved here is whether work orders given by the Coal Companies should be classified under Chapter Heading No. 9965 of Tariff Rules i.e., ‘Goods Transport Agency Services’, leviable to tax @ 12%; as against its classification under Chapter Heading No. 9986, being ‘Support Services to Mining’ which is leviable to tax @ 18%?
• The Hon’ble High Court states that the investigation is going on and even show cause notices has not been issued, at this stage any determination on the issue of leviablity of tax; whether @ of 12% or whether @ 18 % will certainly hamper the entire investigation as well as the same is not warranted also, inasmuch as, one service which is leviable to 12% comes under Chapter Heading No. 9965 of the Tariff Rules and one service which is leviable @ 18% comes under Chapter Heading No. 9986 of the Tariff Rules.
• Thus, the court is not inclined to interfere in declaring the services of the petitioners in either of the heading at this stage.
• Writ applications stands disposed of.