TaxTMI 
TaxTMI 
2025 (5) TMI 2098
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.....06.2005 to 31.05.2007, erred in not considering that, Circular No. F.No.B1/6/2005-TRU dated 27.07.2005 explains the scope of new services and proposed expansion in the scope of existing services w.e.f. 16.06.2005, in terms of Notification No. 15/2005-ST dated 07.06.2005. b. Whether the Learned Tribunal has failed to consider, Paragraph 6 of the instant circular F.No.B1/6/2005-TRU dated 27.07.2005 takes up the scope of 'Site formation and clearance, excavation, earth moving and demolition services'. As mentioned at paragraph 6.2 of thereof, the definition of site formation and clearance, excavation and earthmoving and demolition is an inclusive one and the activities specifically mentioned are indicative and not exhaustive. c. Whether the Learned Tribunal failed to consider that, as per the referred paragraph, prior to mining activities, preparation services, like that of site formation and clearance, excavation and earthmoving or levelling, such as, blasting and rock removal work, clearance of undergrowth, drilling and boring, overburden (OB) removal and other development and preparation services of mineral properties and sites, and other similar excavati....
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....hort payment? 5. With regard to the first issue namely, site formation and clearance, excavation and earth moving and demolition service, the adjudicating authority has taken note of the notification no. 15/2005-ST dated 7.6.2005 and took note of the reference made in the show-cause notice with regard to the services needed for coal mining/extraction and held that the scope of the service has been explained in the Board's circular dated 27.7.2005 and this taxable service covers certain activities like site formation and clearance, excavation and earth moving and demolition. The adjudicating authority thereafter proceeded to take note of the definition of open cast working and held that during the material period site formation etc. services were not considered as mining services which was evident from the circular dated 27.5.2007. Noting the language and the text of the circular, the adjudicating authority held that in no way this inclusive nature would include services related to mining in it; rather it included all such activities those are needed prior undertaking mining and, therefore, the circular remains in conformity with the statute. 6. The next aspect which was dealt....
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....dicating authority while dropping the demand vide order dated 14.3.2012 was examined for its correctness by the learned Tribunal and the facts of the case were reappreciated, more particularly, the terms and conditions of the agreement and the learned Tribunal agreed with the adjudicating authority. The law on the subject has been well settled and this court had an occasion to consider more or less same identical issue in the case of Commissioner of Service Tax Kolkata vs. M/s. Engineering Projects India Ltd., 2025 (4) TMI 773 - Calcutta High Court, wherein reference was made to the decision of the Hon'ble Supreme Court in the case of M/s. Larsen & Toubro, reported in 2015 (39) STR 913 (SC), wherein it was held as follows: "This would unmistakably show that what is referred to in the charging provision is the taxation of service contracts simpliciter and not composite works contracts, such as are contained on the facts of the present cases. It will also be noticed that no attempt to remove the non-service elements from the composite works contracts has been made by any of the aforesaid Sections by deducting from the gross value of the works contract the value of property i....
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.... 23. It is in the above backdrop that the definition of Works contract inserted for the first time by virtue of Section 65 (105) (zzzza) under the Finance Act. 2007 assumes significance and has to be applied w.e.f. 1st June 2007. Thus, on and from the enforcement of the amendment in the Financial Year 2007, i.e.,1st June, 2007 the tax on the service component of works contract became leviable. Therefore till then it was not so leviable as there was no concept of works contract under the said Act. 24. Recognising this aspect of the matter in Larsen and Toubro Ltd. (supra), this Court held that Service Tax on works contract was not leviable, meaning thereby, that such tax on the service component of works contract as defined above did not attract Service Tax prior to the amendment." 9. In the light of the above, the finding rendered by the learned Tribunal was fully justified. 10. The next issue is with regard to dropping of the demand to the tune of Rs. 2,09,43,980/- which related to short payment of service tax. The defence raised by the assessee was that this short payment is attributable to the provision of closing stock of coal value on the last day of the f....