2008 (2) TMI 268 - AT - Service Tax

Tribunal permits new grounds for mining tax appeal under Rule 41

The Tribunal allowed the appellants to raise additional grounds 'J' & 'K' under Rule 41 of CESTAT Procedure Rules related to the taxation of mining ... Application for seeking permission to raise additional grounds - Assistant Commissioner has no objection in permitting the appellants to raise additional grounds - additional grounds raised by them are in terms of an amendment brought to the Finance Act adding mining activity as another category, are necessary - They are legal grounds which are required to be allowed - Hence the appellants are permitted to raise the additional grounds & should file fresh form ST-5 along with grounds Issues: Permission to raise additional grounds under Rule 41 of CESTAT Procedure RulesAnalysis:1. The appellants sought permission to raise additional grounds 'J' & 'K' under Rule 41 of CESTAT Procedure Rules. The Assistant Commissioner filed objections, but no objection was raised regarding the appellants raising these grounds.2. The additional grounds were related to an amendment to the Finance Act, adding mining activity as a taxable category. The appellants argued that the activity of washing coal for KPTCL constituted mining of minerals and fell under taxable services.3. The Senior Counsel contended that these were legal grounds necessitated by the amendment to the Finance Act and should be allowed in the interest of justice. They relied on various judgments supporting the allowance of additional grounds in such circumstances.4. The Senior Counsel argued that the grounds raised were legal in nature and required examination by the court, despite the Respondent's claim that they were questions of fact that should have been raised earlier.5. The Tribunal, after considering the submissions, noted that the Assistant Commissioner did not object to the appellants raising additional grounds. Given that the grounds were necessitated by the Finance Act amendment and were legal in nature, the Tribunal permitted the appellants to raise the additional grounds.6. The Tribunal directed the appellants to file fresh form ST-5 along with the grounds before the next hearing date, which was set for 27-2-2008. The Registry was instructed to issue the Order promptly.This judgment primarily dealt with the issue of whether the appellants should be permitted to raise additional grounds under Rule 41 of CESTAT Procedure Rules, specifically related to the amendment to the Finance Act and the taxation of mining activities. The Tribunal allowed the appellants to raise the additional grounds, considering them to be legal in nature and necessitated by the legislative changes, emphasizing the importance of justice in such matters.