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2018 (10) TMI 552
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....ting work in mines; was awarded winning of iron ore by drilling and blasting in mines; the said activity was conducted for a consideration during the period 16.06.2005 to 31.12.2008. Revenue authorities were of the view that the activities conducted by the appellant and the consideration received thereof are taxable under the category of "Site formation and clearance services" and they are liable to pay the service tax, interest thereof and are to be penalised under appropriate sections. The show cause notice was adjudicated after following due process of law and the demands raised were confirmed along with interest and penalties were imposed. 3. Learned counsel appearing for the appellant draws our attention to the work order issued by ....
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....rned departmental representative on the other hand submits that the activity undertaken by the appellant would fall under the category of site formation and clearance services. He draws our attention to the definition of the said activity as per Sec.65(97)(a) and Sec.65(105)(zzza). He would submit that the definition of site formation and clearance services specifically include drilling, boring and core extraction services for construction, geophysical, geological and similar purposes. He would submit that the Tribunal in the case of RS earth movers P Ltd [2016 (46) STR 544) has specifically held that activity of mining under the contract is taxable for the period prior to 01.06.2007 under site formation services. He produced a copy of the ....
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.... towards the gross quantity which has been blasted in the mines or winning of the iron ore. We have also perused the meaning of the words "blasting for mining" as understood by the people engaged in mining activity and find that the word "blasting and drilling" are understood as under: "2.1 Drilling and Blasting: There are two basic operations that are necessary to achieve success in mining. One operation is drilling and the other one is blasting. Drilling is mainly done for three reasons. The first reason is to investigate the depth-wise distribution of minerals during prospecting. The second reason is to create the blast-holes for rock blasting. The third reason is to drill for dislodging the soft and friable minerals like magnesite....
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.... carve out of the earlier entry. Therefore, the services rendered by the members of the 1stpetitioner cannot be brought to tax under that entry." 9. It is noted further, a similar issue came up before the Bench in the case of Shipping Corporation of India Ltd (supra) and following the ratio of the Hon'ble High Court, the Bench held that the service tax liability on the entries which have been inserted from a specific date cannot be taxed under any other entry prior to such date. It is to be noted that the judgment of the Tribunal in the case of Shipping Corporation of India Ltd was upheld by the Apex Court on an appeal filed by the revenue against the order of the Tribunal. In view of the authoritative judicial pronouncement on the issue....