2022 (4) TMI 256

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 2. The order sheets reveal that the learned counsel for the respondent had not been appearing on earlier occasions and even today also learned counsel for the respondent has not appeared. The present appeal is, accordingly, being decided on merits in the absence of the respondent. 3. The records indicate that M/s Western Coalfield Ltd. [the WCL ] had awarded a contract to the respondent for loading and transfer of coal from one place to another in the licensed area of its mines situated at Wani and Majri and it was noticed by the department that the respondent did not pay service tax under the category of 'mining services' contemplated under section 65(105)(zzzy) of the Finance Act, 1994 [the Finance Act]. This service was made taxable f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eunder while providing services to M/s WC. The terms and conditions also cast certain responsibilities upon M/s WCL as principal employer of the workmen deployed by the Noticee as M/s WCL was ultimately responsible for fulfilling the obligations for their wages, pension and provident fund. Therefore, M/s WCL cannot be considered as a transport agency as they had their legal status of a Miner Company. 16. In view of the above, it appears that the loading of coal by Pay Loaders, in Tippers within the mines area and movement of coal (extracted in mines) within the mines premises for further processing such as washing, sizing and grinding and storage at appropriate place and further transferring and loading of coal into wagons in Railway Sidi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hould not be imposed on them under Section 77 of the Finance Act, 1994 for failure to take registration in accordance with service tax laws and to correctly assess the value of taxable service and furnish the same in their S.T.3 Returns as required under Section 70 of the Act ibid; and v) Penalty should not be imposed on them under Section 78 of the Finance Act, 1994 for suppressing the material facts with an intent to evade payment of Service Tax." (emphasis supplied) 5. The respondent filed a detailed reply to the show cause notice denying the allegations made against it and stated that the respondent was not providing 'mining services'. The Commissioner accepted the contention of the respondent that the services provided by the respo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l. 8. The submissions advanced by learned authorized representative appearing for the department have been considered. 9. The taxable service of 'mining' defined under section 65 (105) (zzzy) of the Act means any service provided or to be provided to any person by any other person, in relation to mining of mineral, oil or gas. The Commissioner has placed reliance upon the definition of "mines" under the Mines Act, 1952 and has observed that all processing including handling and movement of coal from one point of mines to dispatch point of mines are activities carried out in relation to mining of minerals. 10. This issue was examined by the Supreme Court in Singh Transporters vs. Commissioner of Central Excise, Raipur [2012 (27) STR 488 (....