Classification of Service — The applicant raised following questions before us pertains to :

1. Taxability of supply of coal handling and distribution charges @ 18% in case of supply of such services is intended to be expressly made to a customer apart from sale of coal, and

2. Utilization of input tax credit availed for discharging liability towards supply of coal and supply of coal handling and distribution charges respectively.

Held that— we hold that coal handling and distribution charges will be taxable @ 18% and not 5% wherever supply of such services only is intended to be expressly made to a customer.

we are of the opinion that input credit availed as per the conditions specified in section 16 shall be allowed for discharging the liability towards supply of coal and supply of coal handling and distribution charges respectively.—Agarwal Coal Corporation Pvt. Ltd., In Re… [2020] 25 TAXLOK.COM 093 (AAR-Madhya Pradesh)