Levy of penalty u/s 78 of FA - Non-payment of Service Tax -...

Levy of penalty u/s 78 of FA - Non-payment of Service Tax - Cargo Handling Services or mining services - the Supreme Court held that the activity would appropriately be classified under the head “transport of goods by road service” and the activity does not involve any service in relation to “mining of mineral” as contemplated under section 65(105) (zzzy) of the Finance Act. The Supreme Court also held that the definition of “mines” has no apparent nexus with the activity undertaken under the service rendered - the Supreme Court categorically held that the activity undertaken by the appellant would fall under the head ‘transportation of goods by road service’. The Commissioner (Appeals) was, therefore, not justified in holding that the appellant had undertaken the activity of mining service w.e.f. 01.06.2007. - AT