TaxTMI 
TaxTMI 
2026 (8) TMI 520
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....xiliary Service" for the activity of beneficiation of coal has been dropped. 2. The facts of the case are that during the course of audit, it was found that the respondent has entered an agreement with Electronic Corporation of India Ltd (ECIL) for procuring orders for purchase of coal ash, monitors, radiometric density gauge-6 etc of ECIL who agreed to pay 10% commission on sale value of such goods to the respondent. As per the agreement, the commission was to be paid at the said rate to the extent to the order booked, sales made. The respondent adopted certain practices to avoid payment of service tax. The respondent also suppressed the value of taxable services from the department by not declaring the total amount received under the h....
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....994. It is also not disputed by the respondent that the respondent did not carry out the process in relation to production of coal or for on behalf of their clients. Therefore, that activity undertaken by the respondent is liable to be taxed under the "Business Auxiliary Service". He also relied on the decision of Supreme Court in the case of M/s Tata Iron & Steel Co. Ltd.- 2003(154) ELT 343, wherein it has been held that process of washing of coal and removing of ash content would not amount to manufacture. Therefore, the activity undertaking by the respondent is liable to be taxed under the "Business Auxiliary Service". 5. In view of it is submitted that learned authorized representative that the impugned order qua dropping of demand h....
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.... as under:- "2. The said appeal was heard along with the appeal of M/s. Spectrum Coal wherein an identical issue was involved in Tribunal's vide its order No.ST/A/521/12 dated 5-7-2012 [2012 (28) STR 510 (Tri.-Delhi.) has referred to the earlier decision of the Tribunal in the case of Aryan Energy P.Ltd. [2009 (13) STR 42 (Tri.)] and has held that the activity of beneficiation of washery and raw coal is activity of mining which was introduced for the purpose of service tax w.e.f. 16.2007. As such, it was held that prior to the said period no service tax was leviable on beneficiation for better appreciation, we reproduce relevant para of the said decision of the Tribunal in the case of Aryan Energy P. Ltd. Following the above decisi....
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....as no entry covering the said service. Accordingly, it was held:- "21. In the instant case, the definition of BAS did not undergo any change when a new service 'in relation to mining' was introduced with effect from 1 st June, 2007. The Department admits that with effect from 1st June, 2007, the activity carried out by the appellant is covered under the category of service in relation to mining. This activity could not, therefore, have been categorised under BAS prior to 1st June, 2007. 22. Thus, the demand of service tax in the impugned order under BAS from 16 June, 2005 to 30 May, 2007 is not justified." (emphasis supplied). 10. We find that it is settled by the judicial pronouncements that the activity of beneficiati....