2018 (11) TMI 175

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....duction of Carbonaceous Shale (CS) and removal of Hard Shale (HS). These materials were required to be removed from the mining area upto the railways siding as per the terms of the contract. The Department was of the view that the activity carried out by the appellant, in terms of the above contract, would be liable for service tax under the category of Site Formation and Clearance, Excavation and Earthmoving and Demolition Services as defined under Section 65 (97a) of the Finance Act, 1994. Accordingly, show-cause notice was issued on 15.12.2006, demanding service tax for the period from 11.07.2005 to 26.06.2006. The adjudication process culminated with the issue of the impugned order, in which demand for service tax amounting to Rs. 1,68,....

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....he Assessee as well as Shri A.Roy, ld.D.R. for the Revenue. 4. The ld.C.A. submitted that the service tax liability is not being challenged by the assessee. The service tax amount have been received from M/s North Eastern Coal Fields, Coal India Ltd., Assam and immediately thereafter, paid to the Government Account. He submitted that since the assessee being under a bonafide belief that service tax was not liable to be paid, the same was not paid until received of the same from M/s North Eastern Coal Fields, Coal India Ltd., Assam. Under these circumstances, he prayed that the interest as well as penalties may be waived. In this connection, he has also relied upon several case laws, which are as follows : (i) National Mining Co. Ltd. ....

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.... Kolkata Bench of the Tribunal, while upholding the payment of service tax, has sustained the order for payment of interest, but waived penalty with the following observations: "4. After hearing both sides and perusal of the case records, we are of the view that the Adjudicating Commissioner has passed a detailed speaking order with reference to the work done by the appellants and the definition of the impugned service under clause 105(zzza) of Section 65 of the Finance Act, 1994. We note that some of the entries under the definition such as extraction for geological purposes, drilling, soil stabilization etc. are part of the works undertaken by the appellants in the process of extraction of coal. In any case, the appellants are not chal....