TaxTMI 
TaxTMI 
2018 (7) TMI 1004
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....emoval of over burden in the mine attached to the cement factory. The Department was of the view that the activity carried out by the appellant was liable for payment of Service Tax under the category of 'Site Formation and Clearance, Excavation, Earth moving and Demolition Services" which is covered under Section 65 (97a) of the Finance Act, 1994. Accordingly, show cause notice was issued and both the Authorities below ordered payment of Service Tax amounting to Rs. 9,68,857/- along with interest and penalties. Aggrieved by the order for payment of Service Tax, present appeal has been filed. 2. In this connection, we heard Ms Rinki Arora, Ld. Counsel for the Appellant and Shri V. Pandey, Ld. DR for the Revenue. 3. The Ld. Advocate summar....
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....mited only to removal of over burden. Such activity is to be carried out prior to the actual mining activity. He brought to our notice CBEC Circular 232/2006-CX.4 dated 12/11/2007 in which various activities were explained in relation to levy of Service Tax on mining. He submitted that the activity of removal of over burden is liable for Service Tax under Site Formation Service and other activities such as coal cutting and mineral excavation will be liable to Service Tax under Mining Services after 01/06/2007. Finally he submitted that the present contract is only for removal of over burden and not for mining and hence Service Tax is liable to be paid under the category of 'Site Formation'. 6. We have heard both sides and perused the recor....
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....only. Even though such activity has been carried out in the mine area, the contract does not cover any other activity relating to mining. Hence, it is to be considered as a service contract simplicitor for the activity of removal of over burden. This activity is very much covered within the definition of 'Site Formation and Clearance Services' which was included in the statute w.e.f. 16/06/2005. Consequently, we are of the view that during the period under dispute the appellant will be liable to payment of Service Tax under the category of Site Formation. 9. We have perused the various case laws cited in support of the appeal. We note that all these case laws are dealing with composite contracts which include not only the removal of over b....