TaxTMI 
TaxTMI 
2016 (8) TMI 675
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....round mines. The Department entertaining a view that the appellants are liable to service tax in respect of various work executed by them in these mines initiated proceedings against them for recovery of service tax of Rs. 72,73,737/- under the category of 'site formation service' prior to 01/6/2007 and thereafter under the category of 'mining of mineral, oil or gas service'. Service tax not paid on the value of free supply items given by the service recipient (Hindustan Zinc Limited) to the appellant was also sought to be demanded. On conclusion of the proceedings, the Original Authority vide the impugned order confirmed the demand of service tax of Rs. 72,73,737/- and imposed penalty of equivalent amount under Section 78 and a....
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....n discharged much before the issue of show cause notice and there is no justification to include that amount in the present proceedings, apparently with the sole intention of imposing equivalent amount of penalty (e) the whole demand is issued invoking extended period of limitation which is not sustainable as the appellants have intimated their activities to the Department in connection with a correspondence with Jurisdictional Superintendent on 23/11/2004 itself. There is no suppression of any fact by the appellants. In any case, it could be seen from the Board's circular dated 12/11/2007 w.r.t. certain disputes relating to service tax applicability to mining sector the clarification was issued after obtaining feed back from the stak....
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.... - II reported in 2013 - VIL - 08 - CESTAT - DEL. and in National Construction Company vs. CCE, Jaipur reported in 2014 - TIOL - 387 - CESTAT - DEL. Tribunal held that in such situation the activities of site formation and clearance are to be treated as an activity ancillary to mining and since the overall contract for mining the contract being indivisible the same should be treated as mining contract. It was also held that w.e.f. 01/6/2007 when the activity of the appellant has been accepted by the Department as mining service, for the period prior to 01/6/2007 the same activity cannot be classified under site formation service. We find that the impugned order cannot be sustained on this ground. 5. Regarding inclusion of value of f....