Evacuation of settled ash from an ash pond was held not taxable under site formation and clearance, excavation and earth moving and demolition service, following earlier rulings that transport and dumping of ash as part of the production process is not a service activity. The works contract and manpower supply demands were reduced by tax already paid and the admitted deposit, leaving no further tax recoverable, though interest remained payable. On reverse charge for manpower supply received from unregistered parties, the demand failed because payment would have been revenue neutral through immediate CENVAT credit and the extended limitation period was unavailable absent proof of suppression or wilful misstatement. Penalty for suppression was deleted, while penalty for delayed registration and return filing was sustained.
Evacuation of settled ash from an ash pond was held not taxable under site formation and clearance, excavation and earth moving and demolition service, following earlier rulings that transport and dumping of ash as part of the production process is not a service activity. The works contract and manpower supply demands were reduced by tax already paid and the admitted deposit, leaving no further tax recoverable, though interest remained payable. On reverse charge for manpower supply received from unregistered parties, the demand failed because payment would have been revenue neutral through immediate CENVAT credit and the extended limitation period was unavailable absent proof of suppression or wilful misstatement. Penalty for suppression was deleted, while penalty for delayed registration and return filing was sustained.
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