9911796707
TMI Blog2018 (6) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of Rs. 2,14,16,276 on income of Rs. 19,18,69,281 for the period from 1st June 2007 to 31st March 2011. in order-in-original no. GOA/ST/Commr/1/13-14 dated 14th May 2013 of Commissioner of Customs, Central Excise & Service Tax, Goa. Besides the tax liability, the interest and penalties under section 77 and 78 of Finance Act, 1994 are also under challenge. 2. The appellant had entered into a contract with M/s Hardesh Ore Ltd for providing machinery and equipment at Kalay mine from 1st April 2006 for 2006-07 and renewed for the years thereafter. In addition, appellant was also required to sprinkle water, transport raw, as well as reject, ores to designated places at the mine and to provide fuel and lubricants for the vehicles. Appellant cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly with effect from 1st June 2007 and services in connection with mining is not liable to be taxed before that unless identifiable as a, separate taxable service during the earlier period. Even so, it is their contention that rule 5 of Service Tax (Determination of Value) Rules, 2006 excludes the payments from the recipient for being 'pure agent' from the assessable value. Moreover, it is their submission that circular no. 232/2/2006-CX.4 dated 12th November 2007 of Central Board of Excise & Customs has clarified that transportation within mines is chargeable to tax as 'cargo handling service' or 'goods transport by road service', as the case may be, and that notification no. 34/2004-ST dated 3rd December 2004 exempts transportation charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8) ELT 275 (Tri-Mumbai)], it was held that mere belief is not bona fide belief. 6. From the records and the rival submissions, it is clear that all activities in relation to mining was brought under levy of service tax with effect from 1st June 2007. Further, there can be no doubt that activities in connection with mining that were specifically taxable prior to that date could not escape the levy merely because of a new service - composed of various activities some of which were separately taxable - having been incorporated from a particular date. 'Site formation and clearance' is a necessary pre-requisite for extraction from mines and section 65 (97a) of Finance Act, 1994 is not a restricted definition of this activity. However, the princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under some other category of taxable service, in the context of lack of any such proposal in the show cause notice, we are not required to follow that line of thought to its logical conclusion. 8. The supply of fuel/lubricant has been sought to be taxed in the impugned order for the latter period merely because the supply was to a mining location and for the earlier period by association of 'site clearance and formation service' with the subsequent tax levy. The total income from mining is thus intended to brought within the scope of the levy without considering whether any part of the income is generated from activities that are outside the scope of taxation in section 65 (105) of Finance Act, 1994. Taxability is not determined by section ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
