2017 (9) TMI 1326

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....on ore fines. They entered into contract with M/s. Dr. Sarojini Pradhan who was lessee of the mines at Baitarni, Ingani Jharan & Balita Mines. As per the agreement entered into by the appellant, the appellant is described as Contractor for the mines owner and was required to undertake mining, crushing, screening and transportation of different materials from the mines making use of their technical, commercial and managerial expertise. For the activity carried out, the appellant was entitled to share the revenue arising from the sale of the iron ore in the ratio of 95:05 with the mine owner. 2. Department was of the view that the activities carried out by the appellant for the mine owner are to be considered as taxable service classifiable ....

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....e mining service. 5. After hearing both sides and on perusal of the records, we find that the dispute in the present case hinges on the agreement entered into by the appellant with the mine owner Dr.Sarojini Pradhan. Salient features of the agreement are summarised below: "(i) M/s. HMI are the appointed CONTRACTOR to undertake the activities specified in the contract and agreed upon by both the parties. (ii) All sale bills are to be raised by the Mines Owner to the buyers. All sales realization /payment collected from any buyer shall be deposited with the Mines Owner. The contractor shall submit relevant Bill to the Mines Owner for payment against the work executed by them during each month. The Mines Owner shall release the payment to t....