TaxTMI 
TaxTMI 
TaxTMI 
2026 (2) TMI 669
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....ce Tax-II, Kendriya Utpad Shulk Bhawan, 180, Shantipally, Rajdanga Main Road, Kolkata - 700 107, wherein the demand of Service Tax of Rs.3,47,07,998/- has been confirmed for the period 2013-14, along with interest. Penalty of Rs.34,70,800/-has also been imposed under section 78 of the Finance Act, 1994. 1.2. As the issue involved in both the appeals are the same, they are taken up together for decision by a common order. 2. M/s. BLA Projects Private Limited (hereinafter referred to as the "appellant") is a company incorporated under the Companies Act, 1956 (now 2013). The appellant was formerly known as M/s Banowari Lal Agarwalla Pvt. Ltd. They are registered under Finance Act, 1994 vide Registration Certificate bearing No.AACCB0089RST001. 2.1. On the basis of issues raised in EA-2000 Audit, a Show Cause Notice dated 18.02.2015, was issued to the Appellant demanding service tax of Rs.44,86,10,846/- (Rs.20,06,46,035/- on Transportation + Rs.24,79,64,811/- on Civil Construction) under the category of "mining services" for the period from 2008-09 to 2012-13 by invoking extended period of limitation. For issuing the Notice, the officers have taken the figures available in the ....
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....ssified under the categories of mining services as the said services are appropriately classifiable under the category of "Goods Transport Agency Services/Construction Service". It is also submitted that the activities for transportation of coal, etc., are "logistics services" and are "post mining" in nature and have no direct or proximate connection with mining services. Accordingly, it is the appellant's contention that the said activity cannot be classified under "mining services" under Section 65(105)(zzzy). In support, the Ld. Counsel for the appellant has pointed to the fact that in trade, logistic service/construction providers and transporter are never understood as "mining service" providers. 3.1. In support of his contentions, the Ld. Counsel for the appellant relies on the decision of the Hon'ble Supreme Court in the case of Commissioner of C.Ex. & S.T., Raipur v. Singh Transporters reported in 2017 (4) G.S.T.L. 3 (S.C.), wherein it has held that transportation of coal within mines is taxable under GTA Services and not mining services. 3.2. Reliance has also been placed by the appellant on the decision of the Tribunal in the following cases, wherein it has been hel....
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....g of coal, it is an ancillary activity and the main activity is the transportation of coal by road; accordingly, the demand of Service Tax was set aside by the Tribunal. 3.7. The Ld. Counsel for the appellant has also raised arguments on the ground of limitation, contending that the demand in the instant case is barred by normal period of limitation as provided under Section 73 of the Finance act, 1994; that the dispute in the instant case relates to the period from 2008-09 to 2012-13 (SCN-1) whereas the Show Cause Notice was issued on 18.02.2015 i.e. beyond normal period of limitation of one year under Section 73(1) of the Act. He also states that the proceedings in the instant case were initiated on the basis of findings in EA 2000 Audit of the balance sheet, Profit & Loss account, Books of Accounts, etc., and not based on any new facts; hence, it is contended that the extended period of limitation cannot be invoked in this case. In this context, the appellant has relied on the decision in the case of GAC Shipping (India) Pvt. Ltd., Vs. Commissioner of C.Ex. & Cus., Cochin, reported in 2017 (49) S.T.R 242 (Tri-Bang.) wherein the Tribunal, Bangalore held that suppression of fac....
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....Tax of Rs.51,27,152/ on Transportation of Coal within the mining area with incidental loading, which is taxable under "Mining of Mineral, Oil or Gas Service" as defined under Section 65(105)(zzzy) of the Finance Act, 1994. 2.2. The said notice was adjudicated by the Ld. Commissioner by the impugned Order, wherein he has confirmed demand of Service Tax along with interest under the category of "Mining Services". He has also imposed equal amount of tax as penalty under Section 78 of the Finance Act, 1994. .... .... .... 6.2. We observe that the same view has been held by this Tribunal in the case of M/s. Ambey Mining Pvt. Ltd. Vs. CST reported in 2024(3) TMI 1106-CESTAT-Kolkata [Final Order No. 75611 of 2024 dated 22.03.2024 in Service Tax Appeal No. 75830 of 2015 - CESTAT, Kolkata]. The relevant paragraph of the said decision is reproduced below: "6.3. Regarding the demand of service tax under 'Mining Services', the Appellant submits that the Service Tax demand has been raised by merely comparing ST-3 returns with Balance Sheet/Profit & Loss A/c without any investigation. They further submit that the activity of transport....