TaxTMI 
TaxTMI 
2018 (11) TMI 92
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.... sides and perused the records. 3. The facts of the case, in brief, are that the respondent herein were engaged in providing some services to M/s Rashtriya Ispat Nigam Limited(RINL) and JSW Steel Limited (JSWSL) and have been receiving payments for such services. During the manufacture of steel products in RINL and JSWSL, many varieties of scrap like steel scrap, maintenance scrap, reheated/defective bloom scrap, CI scrap, slag scrap etc. are generated. RINL and JSWSL awarded the work relating to scrap recovery processing and transportation to the appellant through work orders. The appellant has been carrying on this work. The show cause notice proposed to charge service tax on these services under the head "Business Support Service", wh....
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..... b) Thus, by these methods, the respondent herein had customers through cost effective methods to sell their scrap and therefore these operations fall under the category of business support services. c) The demand is therefore sustainable alongwith interest and so are the interest and penalties. In their cross objection, the respondent herein supported the impugned order and argued that the activities undertaken by them cannot be called as business support services within the meaning of the term under service tax act. 6. We have considered the arguments on both sides and perused the records. The activity undertaken by the respondent herein is removal of scrap and slag generated during the manufacturing premises of the steel man....
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....e find no infirmity in the impugned order. In conclusion, we find that the appeal is liable to be rejected and the impugned order upheld and we do so. 7. Impugned order is upheld and appeal is rejected. (Operative portion of the order pronounced in open court on conclusion of hearing) ============= Document 1 vil) It has been noticed that the department was not consistent in its stand on classification and taxability. Investigations were conducted against other entities namely, M/s Manisha Construction (P) Limited, Visakhapatnam, M./s Ferro Scrap Nigam Limited, Bhilai Chattisgarh and M/s Ferro Scrap Nigam Limited. Bokaro Steel Plant Campus, Bokaro and show cause notices issued seeking to classify the activity under....
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.... telemarketing. processing of purchase orders and fulfillment services. information and tracking of delivery schedules. managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing. The statutory definition was also qualified by an explanation which read as" For the purposes of this clause, the expression "infrastructural support services" includes providing office along with office utilities. lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom fac....
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.... the one between chalk and cheese. ix) The DGCEI simply concluded that these services are in relation to business /commerce since scrap and slag are saleable commodities. It did not elaborate the same and justify the classification adopted for this purpose. The observation made by DGCEI that NCPL was using huge machinery for doing these activities in the factories of RINL and JSWSL and that the contracts ran into Crores of rupees cannot change the nature of jobs undertaken. It is also noticed that DGCEI was sanguine that the activities rendered by NCPL merit classification under BSS because another entity FSNL were paying tax under that head. It is also noticed that while recording the Statement of Shri. Shiv K....