9911796707
TMI Blog2017 (2) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... mainly relating to excavation, dumping, scrapping, removal of bunds etc. The revenue entertained a view that the appellants have rendered taxable service under the category of "site formation and clearance, excavation and earth moving and demolition service" in terms of section 65(97a) of the Finance Act 1994. Accordingly, proceedings were initiated against the appellant resulting in confirmation of service tax liability of Rs. 18,11,549/-. Penalty equal to said amount was also imposed under Section 78 along with penalties under Section 76 and 77 of Finance Act, 1994. On appeal the original order was upheld. 2. The Id. Counsel for the appellant submitted that the services rendered by them are more in the nature of mining services which wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication dated 12.11.2007 which covers the situation in the present case. 4. We have heard both the sides and perused the appeal records. 5. The nature of service rendered by the appellant is not in dispute. We have perused the terms of the contract and it is clear that the appellants are involved in services of site formation for the coal mines of South Eastern Coal Fields Ltd. The contention of the appellant is that these are mining services not to be taxed under site formation category. We note that the appellants do not have work order for any mining of coal. The terms of the contract are clear to the effect that they make the site fit and ready for coal mining. Coal extraction is not the work given to the appellant. As such, we find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where there is a bonafide belief regarding non liability to service tax as the client did not pay the same. On getting the matter clarified, when the payment is promptly made such waiver of penalty can be ordered. In the present case, we note that the appellant took up the matter with the service recipient, along with various other contractors involved in same type of work, regarding service tax liability, Considering the facts and circumstances of the present case, we find that it is fit case in revoking provisions of Section 80 for waiver of penalties imposed on the appellant. Accordingly while upholding the Service tax liability in full along with the interest, the penalties imposed are waived for the reason stated above. 7. The appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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