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TMI Blog2017 (9) TMI 1326X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant for the mine owner is covered by the definition of mining service under Section 65 (105) sub-clause (zzzy).It is further seen from the agreement that the appellant is required to employ workmen, providing tools etc. and required to undertake mining activity of individual mines - Sub-clause (zzzy) of Section 65 (105) of the Finance Act, 1944, defines the taxable service under the category of Mining of Mineral Oil and Gas service as the service to be provided to any person in relation to mining of mineral oil or gas. It is further seen that the mine owner (who can be considered as service receiver) pays consideration to the service provider. Consequently, the appellant will be liable to pay service tax on the value of taxable servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax demand was confirmed by the adjudicating authority amounting to ₹ 300,80,373/- alongwith interest for the period October, 2007 to March, 2008. Penalty was also imposed under Section 76 of the Finance Act, 1994. Aggrieved by the impugned order, the present appeal has been filed. 3. Heard Shri Kartik Kurmy, Advocate representing the appellant and Shri S. Mukhopadhyay, Counsel for the Department. Shri Kurmy, Counsel for the appellant argued that the appellant has entred into contract with M/s. Dr. Sarojini Pradhan, Mining owner for screening and operation of the mines of iron ore. He was fully responsible for all activities in the mines and was entitled to a share of the sale value of the iron ore. In terms of the contract, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards up-front fees to the Mines Owner as per the mutual agreed terms between the parties. (iv) The Mines Owner, in the event of sustaining any loss by reason or any of its property which is in the opinion of the Mines Owner is due to the negligence of carelessness of the Contractor or their employees, the Mines Owner shall be entitled to recover the full amount of such loss from the Contractor. 6. From the perusal of the salient features of the agreement, it is evident that the nature of activity carried out by the appellant for the mine owner is covered by the definition of mining service under Section 65 (105) sub-clause (zzzy).It is further seen from the agreement that the appellant is required to employ workmen, providing t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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