TaxTMI 
TaxTMI 
2023 (7) TMI 201
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....t under the category of mining service and the period involved is from July 2013 to December 2014. 3. The appellant is engaged in the provision of services of mining, transportation of the mined goods from mining sites to other places and transportation of other goods to various principals/ mine owners. In this regard, the appellant entered into contracts with various principals for the provision of the requisite services by it. According to the appellant, in each of these contracts executed between the appellant and the principals, separate rates have been mentioned for the services of mining and for the services of transportation and the appellant has charged as per the services availed by the principals. The appellant contends that mining work was carried out independently by the principals as well as by the appellant or sometimes by both. Further, the goods mined by the principals have been transported by the appellant and vice-versa. The appellant provided services as desired by the principals and charged for the same accordingly. With respect to the provision of mining services, the appellant acted as a contractor for carrying out the activities of overburden removal....
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....efore the Tribunal, which appeal was allowed, and the order dated 30.6.2015 was set aside. The said decision is Rashleela Enterprises Pvt. Ltd. vs. CCE, Jaipur-I [2019 (2) TMI 675 - CESTAT NEW DELHI] . 7. The present show cause notice dated 17.04.2015 has been issued for the subsequent period from July 2013 to December 2014, proposing a demand of Rs. 4,61,51,720/- with interest and penalty. The appellant filed a detailed reply to the show cause notice denying the allegation. The Commissioner, by order dated 01.02.2017, confirmed the entire demand of Rs. 4,61,51,720/- with interest and penalty. It is this order that has been assailed in this appeal. 8. For the purpose of present appeal, the following six contracts entered by the appellant are in dispute: Particulars of the Contract Scope of work Taxable value (in Rs.) ST payable (in Rs.) ST already paid (in Rs.) ST demand proposed and confirmed (in Rs.) DALLA Contract dated 05.11.2008 Scope of work includes both mining and transportation activity. Separate rates have been mentioned in the contract for the two activities. 403584323 ....
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....reply to the show cause notice enclosing a chart showing details of the site-wise assessable value as shown in the show cause notice together with that part of such value on which service tax was paid. After pointing out the details, the appellant stated that it was not disputing the leviability of service tax on Rs. 38,11,00,584/- on which service tax was Rs. 4,71,04,032/-, which tax had already been paid by the appellant. The chart enclosed by the appellant in the reply to the show cause notice is reproduced below: Name of the site As per Show cause notice As per appellant Breakup of demand in contest Taxable value ST payable ST considered as paid ST demand Taxable value ST payable ST paid details Difference in St paid as per noticees/ department Difference in St paid as per noticees/ department Cash Credit Total a b c d e=d-c f g h i j K=j-h Dalla 403584323 49883022 .. .. 207763768 25679602 3076212 .. .. 25679602....
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....85,73,729/-. This aspect was not considered in the impugned order though it was pointed out by the appellant in the reply filed to the show cause notice. 13. It has also been pointed out by the learned counsel for the appellant that out of the total taxable value of Rs. 61,22,79,616/- on the above six contracts, the appellant had already paid service tax of Rs. 4,71,04,032/- on the taxable value of Rs. 38,11,00,584/-. Further, such taxable value of Rs. 38,11,00,584/- pertains to the values taken with respect to Sidhi, Nilgrie, Beohari and Bokaro site contracts. Therefore, according to the appellant service tax has duly been discharged with respect to Sidhi, Nilgrie, Beohari and Bokaro site contracts and no demand was sustainable. This submission deserves to be accepted. 14. Thus, out of the total taxable value taken for the purpose of proposing the demand, taxable value of Rs. 23,26,52,217/- (Rs. 61,22,79,616 - Rs. 38,11,00,584) is the value which pertains to the remaining two sites i.e. Dalla and Tanda contracts. With respect to these two sites, the appellant gave activity-wise bifurcation in its reply and it is reproduced below: Particulars/ Name of the site ....
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....aterial mined by the Appellant 11,68,83,300 - 11,68,83,300 1,44,46,775 Transportation from railway siding to plant etc. having no relation to mining - 3,53,58,477 3,53,58,477 43,70,308 Total 19,58,20,555 3,53,58,477 23,11,79,032 2,85,73,729 18. Even if it is assumed that the contention of the department is correct that the appellant had undertaken the transportation activity as a part of mining activity undertaken by it and the receipts with respect to the same would be taxable under mining services, then too the transportation undertaken by the appellant in isolation or in the absence of any mining activity undertaken by it, cannot be considered as part of mining activity and thus, would not be taxable under the mining services. Thus, receipts of Rs. 7,89,37,255/- and Rs. 3,53,58,477/- pertaining to transportation of materials wherein no mining activity had been undertaken by the appellant would not be susceptible to service tax and the demand would have to be restricted to Rs. 1,44,46,775/- only. 19. The contracts in question entered by the appellant with the mine own....
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....xable under the category of GTA service and not under mining service. The relevant portion of the decision is reproduced: "14. Having considered the rival contentions, we find that the appellant has got separate registration for both the categories of service that is mining service and GTA service along with other services. Further in the agreement, separate rates were mentioned for the mining activity and for the transportation activity. Further, it is admitted fact that the appellants have also transported the mineral mined by other entities also. Further, we find that the issue involved is covered in favour of the appellant by ruling of the Hon'ble Supreme Court in the case of CCE & ST, Raipur Vs. Singh Transporters - 2017 (7) TMI 494 (SC), wherein under the similar facts and circumstances, the issue before the Apex Court is whether the goods i.e. coal transported by the Singh Transporters from the pit-heads to the railway sidings would fall within the taxable service as defined under Section 65(105)(zzzy) of the Service Tax Act, 1994 i.e. mining service or as defined under Section 65(105) (zzp) of the Finance Act. The Hon'ble Supreme Court opined that the activity unde....
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....ive the following types of services, mostly on contract basis :- (i) Excavation/drilling and removal of the overburdens (i.e. stratum, layer of mud, boulders, etc, that needs to be removed during or prior to extraction of coal/minerals). (ii) Coal cutting or mineral extraction and lifting them up to the pithead. (iii) Handling and transportation of coal/mineral from pithead to a specified location within the mine/factory or for transportation outside the mines. ... 5. Handling and transportation of coal/mineral from pithead to a specified location within the mine/factory or for transportation outside the mine: These activities are post-mining activities and are chargeable to service tax under the relevant taxable services, i.e., "Cargo Handling service" and "Goods Transport by Road". However, in case, such transportation is undertaken by mechanical systems, such as conveyor belt system, ropeway system, merry-go-round systems etc., and the same is not transported by road, no service tax would be chargeable. Service tax is, however, chargeable under cargo handling service, even if the loading, unloading and similar activities are ....