TaxTMI 
TaxTMI 
2008 (5) TMI 248
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....es in the category of "Business Auxiliary Services". The learned Adjudicating Authority gave a finding that the appellant rendered service in the category of "Business Auxiliary Service" which is liable to Service Tax. He confirmed a payment of Rs. 1,80,84,957/- (Rs.1,77,30,349/- Service Tax + Rs. 3,54,608/- Education Cess). The period involved is from 10-9-2004 to 31-8-2005. The longer period in terms of proviso to Section 73(i) of the Finance Act has been invoked. Interest under Section 75 has also been demanded. Penalty equal to the tax confirmed has been imposed under Section 78 of the Finance Act. Further, under Section 76 penalty of Rs. 100/- per day has been imposed. The appellants are highly aggrieved over the impugned order. Therefore, they have come before this Tribunal for relief. 3. Shri A.P. Datar, seamed Senior Counsel assisted by Ms. Rukmani Menon, lerarned Advocate, appeared on behalf of the appellants. Shri R.P. Raheja, learned JCDR appeared for the Revenue. 4. We heard both sides. 5. The main contention of the appellant is that the activity of washing of coal is an integral part of mining of coal. The coal in India has a very high ash content and unless washing....
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....under cleaning, washing, screening and sizing of coal. (f) To arrange for delivery of beneficiated coal as per the monthly/quarterly schedules. (g) To utilize the services of Coal Transport Agency (CTA) for making. (h) To dispose the rejects. 8. The allegation is that the above services are covered by clauses (v) and (vii) of Section 65(19). The above activities have nothing to do with any taxable services. At best, washing/cleaning of coal will amount to processing which will be taxable only from 16-6-2005, the other activities connected with collection and transportation of coal cannot be treated as any Business Auxiliary Services. Moreover, when the contract is composite for supply of washed coal, it is not open to the department to vivisect the contract. The dominant intention alone must be taken. Reliance was placed on the decision of the Apex Court in the case of BSNL v. State of U.P - (sic) (BSNL v. Union of India) - 2006 (2) S.T.R. 161 (S.C.) = 2006 (3) SCC 1. 9. As the demand was under the bona fide belief that the activities carried out by them are not liable to service tax, they did not register themselves and discharge the tax liability. Therefore, longer period ca....
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....coal is passed through the Double Roll Crusher to reduce the size to minus 50 mm. The crusher output as well as the minus 50 mm coal from the Rotary Breaker are screened in a Double Deck 50/25 mm size vibrating screen. The 50-13 mm coal is washed in a barrel washer and collected separately in an Overhead Bunker. The minus 13 mm coal is collected in an Overhead Bunker and rejects from Barrel washer is collected in a wet reject Bunker. Beneficiating involves cleaning, washing screening and sizing of coal. In the whole process, although the raw coal is washed with plain waters it continues to remain coal and it is regarded as coal only. 13. Initially the appellant contended that the process undertaken by them amounted to manufacture. Therefore, they would not be liable to service tax. However, the said contention of the appellant was negatived by the learned Adjudicating Authority. The learned Adjudicating Authority held that that the process of beneficiation of coal does not amount to manufacture. During the proceedings before the Tribunal the appellant did not stress this point. The request of the appellant to restrict the value of services rendered to KPCL to Rs 88.64 per MT was n....
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....ention about development and operation of coal washeries other than those for which department of steel is responsible. Coal washeries may be set up by coal consumer or by an operator for obtaining coal of desired quality to meet the demand and supply of washed coal. Possible allocation of the washery may be near pithead in general. The Coal (Nationalization) Act, 1973 was amended w.e.f. 9-6-1993 to allow coal mining for captive consumption for generation of power, washing of coal obtained from a mine and other end uses to be notified by Government from time to time, in addition to the existing provision for captive coal mining for production of iron and steel. The learned Advocate brought to our notice an important decision of the Hon'ble Apex Court in the case of Bharat Coking Coal Ltd. v. State of Bihar & Other cited (supra). In the said decision the scope of the definition of mining operation and mine were examined by the Apex Court. It was held that the slurry which is deposited on the riverbed is not dumped there artificially by any human agency instead coal particles are carried to the riverbed by the flow of water through natural process. Therefore, any operation for the ex....