TaxTMI 
TaxTMI 
2017 (3) TMI 790
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....n the agreement entered into by the appellant with M/s Bharat Aluminum Company Limited (BALCO), Korba, Bilaspur. In terms of the agreement dated 20.06.2002, the appellant was required to execute various services to BALCO for its captive power plant at its Korba Aluminum Complex, since they did not have facilities for transportation, handling and storage of coal etc. Clause 3 of the agreement requires the appellant to carry out the following services: i. Transportation of coal from Gevra silo loading point up to Korba STPS unloading point using existing MGR system. ii. For coal crushing and conveying using existing coal handling plant facilities. iii. Supply of the clarified water and DM water to BCCP using pre-treatment and DM plants ....
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....r the appellant as well as Dr. Neha Garg, ld. DR for the respondent. 4. To challenge the impugned order, the appellant agitated the following grounds: i. Even though the appellant has paid service tax on the consideration of Rs. 145/- per MT under "Business Auxiliary Service", they have contended that the contract with NTPC is for crushing coal and this activity is not covered under the scope of "Business Auxiliary Service" during the period September, 2004 to June, 2005. During this period, "Business Auxiliary Service" (BAS) was applicable only for production of goods on behalf of the client. The word "Processing" was included in "BAS" only after the above period. Since, the activity of crushing of coal does not amount to producti....
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....fied its activities under "Business Auxiliary Service" and has already been paid service tax on a part of the consideration received to the extent of Rs. 145/- per MT out of total Rs. 175/- per MT received for the activities carried out at BALCO. They have excluded an amount of Rs. 30/- per MT from payment of Service Tax without any basis. It can only be an afterthought. The non-payment of service tax would have gone completely unnoticed but for the detection of the same by the audit party. Accordingly, she prayed that the demand may be upheld. 7. Heard both sides and perused the records. The appellant's agreement with BALCO was for carrying out the activities of transportation of coal from one point to another within the factory and furth....
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....ut does not includes any information technology service and any activity that amounts to "manufacture" within the meaning of clause (f) or Section 2 of Central Excise Act, 1944. 9. BALCO has outsourced the activity of movement of coal within its plant and undertaking crushing thereof to the appellant for want of such facilities within their captive power generating plant. The appellant contented that the activity of crushing of coal is in the nature of processing of goods, which were brought within the Section 65(19) only from 16.06.2005. In serial no. (v) above the words by "Production" has been replaced by "Production or Processing of goods". In the light of the amendment as above, the submission of the appellant is that the activity car....
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....ntimately connected with crushing. In any case, the contract for activity includes both. Hence, we find no basis to exclude Rs. 30/- from payment of service tax. 12. The appellant has claimed that the Show Cause Notice is time barred. Since, the same has been issued more than one year from the date in which the appellant intimated the audit party vide their letter dated 08.12.2007 giving the details of the activity undertaken by them for BALCO. Hon'ble Gujarat High Court in the case of Neminath Fabrics (P) Ltd vs. Commissioner of Central Excise, Surat-I 2010 (256) ELT 369 (Gujarat) has clearly held that date of knowledge was of no significance. The Hon'ble Court has held that once the suppression of facts is established, then the Show Caus....