TaxTMI 
TaxTMI 
2019 (2) TMI 675
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....ying out activities like overburden removal, mining the ore from the bottom of mine and cutting the rocks by drilling/blasting and raising of ore. The appellant is charging & collecting its charges for such services as specified under respective contracts. 3. The appellant also charges separate amounts for the services rendered towards transportation of mined material to respective plants, crushers or other designated places and transportation of rejects to dump sites etc. which are at a place distant from the mines and this transportation takes places through public roads. 4. It is pertinent to note here that the mining work is carried out independently by the principals as well as the appellant, or sometimes by both; the goods mined by the principals are also transported by the appellant and vice versa. The appellant provides services as desired by the principals and charges accordingly. 5. The mining activity ceases as soon as the mineral is excavated. Thereafter 'transit slips' are prepared by the appellant and the goods are transported to plants, crushers or other designated places which are at a place distant from the mines. This transportation takes places through p....
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.... appeal memo). The appellant submitted a reply dated 6.4.2015 (page 186-204 of appeal memo) wherein the demand was disputed. However, vide the impugned order, the Adjudicating Authority confirmed the proposal made in the SCN. Hence, the present appeal. 12. Show cause notice dated 13 October 2014 was issued for the period 2009-2010to June, 2013 demanding the differential/short paid service tax with further proposal to impose penalty. The SCN was adjudicated vide impugned Order-in-Original dated 30 June, 2015 and the proposed demand was confirmed along with interest and further penalty was imposed under section 78(1) of the Finance Act. Being aggrieved, the appellants are before this Tribunal and have urged the following contentions:- (A.1) It is submitted that the appellant is, inter alia, providing services for mining and transportation of goods in terms of agreements entered into with various parties. However, the nature of activities under different agreements vary. The receipts towards transport work and other work can thus be bifurcated into the following categories:- (i) Mining is undertaken by the Principals and transportation is undertaken by the appellant. ....
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....ation services to be that of 'mining services' by observing that the appellant has to execute entire work from reject removal, ore drilling, blasting and raising and transportation of limestone which comes under 'mining services'. (A.8) It is submitted that the Adjudicating Authority has misdirected himself to understand the work under all the contracts to be for series of activities starting from the mining of materials to the delivery of such material to the designated sites of mine owners i.e. service recipients and considered the contracts to be composite in nature involving mining as well s post-mining activities. Accordingly, it has been held that the main activity is not that of transportation but of mining and the transportation being a post mining activity is incidental to mining and, covered under the category of 'mining service'. (A.9) In this regard, the appellant submits that above finding has been given without considering the fact that the services by way of transportation of goods by road in the present case are - (i) independent of any activity of mining carried out by the appellant. (ii) carried out even when there is no work of mining in t....
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....or separate activities under a common agreement/instrument, the activities should be classified under their respective categories. (i) Jain Carrying Corporation Vs. CCE, Jaipur - 2014-TIOL-3069-CESTAT-DEL upheld by the Hon'ble Supreme Court in Commissioner Vs. Jain Carrying Corporation - 2015 (39) STR J370 (SC); (ii) Jai Jawan Coal Carriers Ltd. Vs. CST, New Delhi - 2014(6) TMI 393-CESTAT-New Delh. (iii) Mosaic India Pvt.Ltd. Vs. CCE & ST, Rajkot -2014 (12) TMI-169-CESTAT-AHMEDABAD. (iv) H.N. Coal Transport Pvt. Ltd.& Or Vs. CCE &ST, Raipur-2018(8)TMI 173-CESTAT-New Delhi. (v) Joginder Coal Transport Pvt. Ltd. & Ors Vs. CCE & ST, Raipur - 2018(8)TMI 1106-CESTAT-New Delhi. (vi) Kanwal Coal Carriers Pvt. Ltd.& Ors Vs.CCE, Raipur- 2018(9) TMI 581 -CESTAT-New Delhi. (vii) CCE & ST, Raipur Vs. Singh Transporters - 2017(7) TMI 494-SUPREME Court (A.16) It is further submitted that in so far as the invoices pertaining to mining activities, the principals are making payment to the appellant after deducting Income Tax at source (TDS) as per Section 194 C of the Income Tax Act, 1964 which is applicable to mining work. However, ....
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....greement are not taxable. Such bona fide belief was based on the fact that few service recipients discharged service tax liability on reverse charge basis and the same was duly accepted by the Department and a show cause notice was issued to Hindalco. (B.5) It is further submitted that regular audits of the books of the appellant was conducted by the Department and no dispute in this regard was ever raised. (B.6) Moreover, it is submitted that the issue involved in the present case is that of interpretation of complex provisions of tax. Therefore, in such a situation, the invocation of extended period of limitation is not justified. In this regard, reliance is placed on the judgement of the Hon'ble Supreme Court in Pushpam Pharmaceuticals Company Vs. CCE, Bombay - 1995 (78) ELT 401 (SC). (B.7) It is submitted that the issue involved in the present case is that of interpretation of complex provisions of law and appellant had a bona fide belief, as elaborated above. Hence, the penalties imposed may also be waived in the present case under Section 80 of the Finance Act, 1994 as there was reasonable cause for failure to deposit tax, if any." 13. The ld. AR for revenue have ....