TaxTMI 
TaxTMI 
2015 (2) TMI 1130
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....al, Principal Bench, New Delhi, (hereinafter referred to as 'the Tribunal') in Service Tax Appeal No. ST/461/2007-CU[DB]. 3. A show cause notice was issued to the Respondent on 30.8.2006 raising demands for service tax inter alia with regard to services rendered by it to its clients for washing of coal purchased by the latter from South Eastern Coalfields Limited (hereinafter referred to as 'SECL'). The Respondent submitted its reply to the show cause notice after which liability was affirmed by the Commissioner by order dated 24.5.2007 for Rs. 5,57,81,545/-. Aggrieved, the Respondent preferred an appeal before the Tribunal. The Tribunal held that washing of coal was a mining activity amenable to service tax with effect from 1.6.20....
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....liability at least from 16.6.2005 after inclusion of the word 'processing', after the word 'production' in the definition of Business Auxiliary Service. The order of the Tribunal therefore calls for interference as naturally the Respondent will now claim refund for the period that it voluntarily paid service tax from 16.6.2005 to 1.6.2007. 6. Learned Counsel for the Respondent submitted that in their objection they had taken a definite stand that washing of coal on behalf of their clients did not amount to a Business Auxiliary Service in relation to production of goods on behalf of their clients relying on 2003 (154) ELT 343 SC (CCE v. Tata Iron and Steel Co. Ltd.). The Respondent had further relied on a clarificatory lette....
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....of and for development of coal, the Central Government may require the agent or manager of all coal mines to take measures which may include washing of coal with a view to reducing the ash contents of the coal. Washing of coal or reducing the ash content of the coal was not considered by the Parliament as a manufacturing activity. Even if coal is washed and ash contents are reduced, Section 6 uses the phraseology ("of all coal raised") and "on all coke manufactured and dispatched", which would mean that coke is manufactured while coal is only raised. It is not manufactured. In this view of the matter, there is no substance in the argument raised by the learned Counsel of the appellant." 9. The Commissioner was exercising quasi judicial po....