TaxTMI 
TaxTMI 
2026 (9) TMI 91
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....y, the demand of service tax of Rs. 90,30,059/-, together with applicable interest and penalties under Section 77 and 78 of the Finance Act, 1994, has been confirmed upon the category of "Cargo Handling Services", while appropriating the amount already discharged by the appellant under "Mining Service". 2. The brief facts are that the appellant was engaged by M/s Madras Cements Ltd., for carrying out activities relating to excavation, loading, transportation and unloading of lime stone from the mine face to the crusher situated within mining lease area. On introduction of the taxable service of "Mining of Mineral, Oil or Gas" with effect from 01.06.2007, the appellant obtained service tax registration and discharged service tax under the....
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....el)], Commissioner of Service Tax, Kolkata Vs EMTA Coal Ltd., [2025 (31) CENTAX 400 (CAL)], Singh Transporters Vs CCE, Raipur [2012 (27) STR 488 (Tri-Del)] maintained by the Hon'ble Supreme Court, Calcutta Industrial Supply Corporation Vs Commissioner of CGST, Kolkata [2024 (24) CENTAX 219 (Tri-Cal)], Karamjeet Singh & CO Ltd., Vs CCE, Jabalpur[2024 (21) CENTAX 69 (Tri-Cal)], Ambey Mining Pvt Ltd., Vs CST, Kolkata [2024 (23) CENTAX 430 (Tri-Cal)]. 6. It is further argued that "Mining Service" itself was brought within the service tax net only with effect from 01.06.2007 and, therefore, activities which constitute mining cannot be artificially brought within an earlier taxable category so as to impose service tax for the period prior ther....
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....firmed. 9. We have heard and considered the submissions made by both the sides and perused the records. 10. The principal issue for determination is whether the activities of excavation, loading, transportation and unloading of lime stone carried out by the appellant within the mining area are liable to service tax under the category of "Cargo Handling Service", particularly for the period prior to introduction of "Mining of Mineral, Oil or Gas service" with effect from 01.06.2007. 11. It is not in dispute that the appellant was performing an integrated set of operations commencing from excavation of limestone and extending to its loading, transportation from the mines face and unloading at the crusher located within the mining are....
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....ted so as to classify incidental loading and transportation separately as Cargo Handling Service. 13. We also find considerable force in the appellant's submission arising from the introduction of the specific taxable entry "Mining of Mineral, Oil or Gas Service" with effect from 01.06.2007. The Revenue itself accepted the appellant's very same activities as mining service after 01.06.2007 and service tax was discharged accordingly. No material change in the nature of the activity before and after 01.06.2007 has been demonstrated before us. Once the essential character of the activity is found to be mining the mere fact that excavation necessarily involves loading and movement of the extracted mineral cannot convert it into Cargo Handlin....
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....and specifically under "CHS". Therefore, the demand cannot now be sustained under a different taxable category on the premise that the activities may otherwise fall within Mining Service. It is settled law that adjudication cannot travel beyond the allegations and classification proposed in the Show Cause Notice. 16. Even otherwise, we find substance in the appellant's plea on limitation. The statement of the appellant was recorded as early on 02.08.2007, whereas the Show Cause Notice was issued only on 25.03.2010. The appellant had obtained registration under Mining Service after it's introduction and had paid service tax under that category. These facts do not support the allegation of deliberate suppression with intent to evade paymen....