TaxTMI 
TaxTMI 
TaxTMI 
2012 (9) TMI 24
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.... of raw coal, the cleaned coal and rejects are returned to the said parties for their captive consumption. 2. Proceedings were initiated against the appellant by way of issuance of a Show Cause Notice (SCN) dtd. 30.08.06 proposing confirmation of service tax of Rs.5,57,81,545/- on the allegation that by undertaking the above activity of benefication/washing of raw coal, they have provided taxable service falling under category of 'business auxiliary services'. In addition, service tax of Rs.17,14,573/- was proposed to be confirmed on the taxable value of the 'cargo handling services' undertaken by the appellant during the period 01.04.04 to 30.03.06. Notice also proposed imposition of penalties. The said SCN culminated into impugned order ....
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....ewatered, rinsed of magnetite and dried in centrifuges before being blended to the by passed fines. Then the clean coal and reject coal are collected separately in bunker through separate belt. It also appears that during the course of washing, no chemicals are added as the coal benefication plant is natural media washing plant. The chemical viz. Plocculants are used to handle the slurry in thickener and as well as in belt press to separate the coal fines and clean water. 6. The raw coal, which it receives from the coal mines of SECL for washing purposes is of 'F' grade, having ash content in the range of average 40-42% and size ranging from 1 to 250 mm. After crushing screening and washing, the clean coal size ranges from 1 to 50 mm and a....
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....shing coal is carried on, for the purpose of preparing the coal for sale is an integral part of a mine as it involves ancillary process. Washery is included within the definition of mine under the Mines Act, 1952. In the decision of the Apex Court in the case of State of West Bengal v. Kesorm Industries & Others - 2004 (10) SCC 201, the Apex Court has observed that the definition of mine is wide. Coal washing plants or coking coal or quarries coal mines and washed coal slurry, and cokes of different grades would also come within the definition of coal. In view of the above observations we are of the considered view that the beneficiation of coal carried out by the appellant is definitely a part of mining activity. The service provided by to....