2025 (5) TMI 1819

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....ssioner (Appeals) has upheld the Service Tax demand of Rs.18,68,331/- under section 73(2) of the Finance Act, 1994 on the ground that the activity of "transportation of mining rejects within the mines" is taxable under the category of Mining Services during the periods 2006-07 to 2007-08 (up to 30-05-2007). 2. The facts of the case are that M/s. Shyam Sundar Sharma (hereinafter referred to as the "Appellant") is a proprietorship concern engaged in transportation of mining rejects, etc., within the mines of their clients. The Appellant is registered under the Finance Act, 1994 vide Registration bearing No. AAACO2108CST001. They were awarded Work Order for "Transportation of Mining Rejects within the Mines" by their client, namely, M/s Bon....

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....f tax as penalty, under Section 78 of the Finance Act, 1994, besides imposition of penalty under Section 77 of the Act. 2.5. On appeal, the Ld. Commissioner (Appeals) reduced the demand of Service Tax to Rs.18,68,331/-, along with applicable interest and penalties. 2.6. Aggrieved by the confirmation of the above demand of Service Tax, along with interest, and penalties, the appellant has filed the present appeal before the Tribunal. 3. The Ld. Counsel appearing on behalf of the appellant submits that the Ld. Commissioner (Appeals), in the impugned Order, has held that the activities of 'transportation' within the mines are 'indirectly' connected with the mining activities. In this regard, it is contended that the activity of Transp....

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....l. 4. The Ld. Authorized Representative of the Revenue reiterated the findings in the impugned order. 5. Heard both sides and perused the appeal documents. 6. From the Work Orders listed under paragraph 2.2 of this Order (supra), we observe that the activities undertaken by the appellant as per the said work orders are related to "Transportation of Mining Rejects within the Mines". We find that transportation of mining rejects is a 'post mining' activity which is not liable to service tax under the category of 'Mining Services' as clarified by Board vide Circular No.F.No.232/2/2006-CX.4 Dated 12-11-2007. The relevant part of the said clarification is reproduced below: "5. Handling and transporting of coal/mineral f....