2019 (5) TMI 1622

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....he demand of Service tax with interest and penalty has been upheld. 2. The appellant is a manufacturer of Explosives & Detonating F use and is also registered under taxable category of "Goods Transport Agency Service". A show cause notice dated 20 September, 2011 was issued to the appellant mentioning therein that during the course of audit of the accounts of the appellant by the internal audit team of the Central Excise Department, it was revealed that in the year 2006-07, the appellant had entered into an agreement with one Shir P.Ramaiah of Khammam (AP) for providing work of de-silting of iron ore slimes including loading and transportation of the same at Kadampal Tailing Dam to the fine ore dump at M.V. Siding, Kirandul of Bailadila ....

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....cise and Customs, New Delhi pertaining to the Budget 2005-06. 6. 'Site Formation' defined in clause (97a) of Section 65 of the Finance Act, 1994 is as under:- ^95[(97a) "Site formation and clearance, excavation and earth moving and demolition" includes,- (i) drilling, boring and core extraction services for construction, geophysical, geological or similar purposes; or (ii) soil stabilization; or (iii) horizontal drilling for the passage of cables or drain pipes; or (iv) land reclamation work; or (v) contaminated top soil stripping work; or (vi) demolition and wrecking of building, structure or road, but does not include such services provided in relation to agriculture, irrig....

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....es and sites, and other similar excavating and earthmoving services. Demolition of structures, buildings, streets or highways is also undertaken for a consideration as a preparatory activity for subsequent construction activity or for clearing the site for any other purpose. All such activities fall within the scope of this service." 8. A bare perusal of paragraph 6.2 quoted above indicates that the activities mentioned for site formation are prior to construction of buildings, factory or any civil structure, activity of mining or laying cables or pipes, and they are in the nature of preparation services of Site Formation to make the land suitable for such activities. 9. To appreciate whether the activity carried out by the appellant ....