2018 (11) TMI 226

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....ervice tax has been raised by covering the total period from 16.08.2002 to 24.03.2007. 2. The appellants had entered into three contracts with M/s Tata Steel Ltd. for rendering services relating to mining activities within the States of Jharkhand and Orissa. The three contracts covered the works as follows : (i) The Work Orders dated 24.09.2003 as well as 13.04.2005 were for "Iron Ore raising from Katamati iron mines by deploying own Heavy Earth Moving Machinery (HEMM) as per requirement in order to raise iron ore". The Work Contracts were for carrying out excavation, loading, transportation and unloading of ROM & Waste/Reject at designated dump yard/stock yard. (ii) The Work Order dated 24.02.2005, was for hiring of Heavy Earth Mo....

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.... case of Triveni Earthmovers Pvt. Ltd. Vs. Commr. of Central Excise, Salem reported in 2009 (15) S.T.R. 393 (Tri.-Chennai). The Tribunal in above cases held that Site Formation and loading and transportation of goods in the mining are are ancillary to the mining services and not liable to service tax before 01.06.2007. (ii) With reference to the Work Order dated 24.02.2005, he submitted that the order is only for supply of heavy machinery for use in mining. Such activity can be liable to service tax only w.e.f.16.05.2008 when the separate category was introduced, which covers hiring of tangible goods. (iii) Finally, he submits that entire demand for service tax may be set aside. 6. The Revenue's case is that in the contracts, the t....

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....he appellants in cases of M. Ramakrishna Reddy as well as Triveni Earthmovers Pvt. Ltd. (supra), wherein the Tribunal has held that Site Formation and Loading and Transportation of goods within mining area are not liable to service tax prior to 01.06.2007. The demand raised against the services are for a period prior to 01.06.2007 and hence, the demand for service tax cannot be sustained. Consequently, we set aside the demand pertaining to the above two Work Orders raised by both the show-cause notices in this case. 9. The activities covered under Work Order dated 24.02.2005 are entirely of a different type. The description of Work Order as mentioned is for hiring of Heavy Earth Moving Machinery for development of iron mines as per the s....