TaxTMI 
TaxTMI 
2013 (3) TMI 355
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....ering services under the category of Business Auxiliary Service to their clients i.e. M/s. Steel Authority of India (M/s. SAIL). The activity undertaken by the respondents is excavation, picking, sorting, breaking, sizing and stacking, loading of iron ore into trucks, transporting to screening plant or railway siding, loading of ore into BG wagons at railway sidings and removal of rejects etc. As the respondent were appointed as a contractor by M/s. SAIL through contract/agreement and have undertaken the activities as stated hereinabove and received job charges against the bills raised at the contracted rate but have not discharged their service tax liability on the above said activities. Therefore, a show-cause notice was issued for demand....
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.... has been issued to the appellants alleging that the agreement is a composite agreement entered by them along with clients for the activities mentioned above are under composite contract and the said contract is mainly covered under the mining services not under the provision of Business Auxiliary Services. He further submitted that as Section 65A of the Finance Act, 1994 provides how to classify the taxable service. He further submitted that the Board's Circular dated 29-2-2008 further clarified how to classify the taxable services and in this case, the activities undertaken by the respondents is classifiable under mining services only which the adjudicating authority has classified. From any corner of the agreement, the activities underta....
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....008-TRU, dated 29th Feb-2008 and has given certain guidelines which are reproduced herein under : "3. Classification of taxable services : 3.1 Taxable services are defined separately under Clause (105) of Section 65 of the Finance Act, 1994. Services are supplied as a single composite service by bundling number of different services or disaggregating a single supply into different components. Tax liability may vary depending upon the treatment of the transaction either as a single composite service or multiple supply of service. For the purpose of levy of service tax, a single composite service is to be classified under any one of the specified taxable services. 3.2 For the purpose of classification of a service covering number of ....
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.... classification. 3.4 Seven services are being separately defined as taxable services. Specifying a service separately as a taxable service does not necessarily mean or suggest that services falling within the scope of newly specified service were not earlier classifiable under any one of the existing taxable services. Grouping of services under a specific taxable service may change. The scope and coverage of a taxable service are to be determined strictly in accordance with the language of the relevant statutory provision existing during the material period." 7. Section 65A of the Finance Act also deals with the situation for classification of taxable services which are also reproduced below : "Classification of taxable services ....