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TMI Blog2018 (10) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... fficient quantity as and when required of iron ore in the mines; the said work order also specifies about the drilling pattern and explosive for such drilling will be given by the mine owners; the bills which have been raised by the appellant for payment also indicates that consideration is towards the gross quantity which has been blasted in the mines or winning of the iron ore - From the mere reading of the said activity and the activity undertaken by the appellant, it can be seen that the appellant is engaged only in drilling and blasting in the mines and the definition of site formation and clearance services will not get attracted to the activity undertaken by the appellant. A similar issue came up before the Bench in the case of Shipp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting in mines; the said activity was conducted for a consideration during the period 16.06.2005 to 31.12.2008. Revenue authorities were of the view that the activities conducted by the appellant and the consideration received thereof are taxable under the category of "Site formation and clearance services" and they are liable to pay the service tax, interest thereof and are to be penalised under appropriate sections. The show cause notice was adjudicated after following due process of law and the demands raised were confirmed along with interest and penalties were imposed. 3. Learned counsel appearing for the appellant draws our attention to the work order issued by the various mines and the terms and conditions thereof. It is his submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undertaken by the appellant would fall under the category of site formation and clearance services. He draws our attention to the definition of the said activity as per Sec.65(97)(a) and Sec.65(105)(zzza). He would submit that the definition of site formation and clearance services specifically include drilling, boring and core extraction services for construction, geophysical, geological and similar purposes. He would submit that the Tribunal in the case of RS earth movers P Ltd [2016 (46) STR 544) has specifically held that activity of mining under the contract is taxable for the period prior to 01.06.2007 under site formation services. He produced a copy of the said order and also relies upon the judgment of the Tribunal in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iron ore. We have also perused the meaning of the words "blasting for mining" as understood by the people engaged in mining activity and find that the word "blasting and drilling" are understood as under: "2.1 Drilling and Blasting: There are two basic operations that are necessary to achieve success in mining. One operation is drilling and the other one is blasting. Drilling is mainly done for three reasons. The first reason is to investigate the depth-wise distribution of minerals during prospecting. The second reason is to create the blast-holes for rock blasting. The third reason is to drill for dislodging the soft and friable minerals like magnesite with shallow depth drills." 8. This is as per technical report on rock blasting for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tpetitioner cannot be brought to tax under that entry." 9. It is noted further, a similar issue came up before the Bench in the case of Shipping Corporation of India Ltd (supra) and following the ratio of the Hon'ble High Court, the Bench held that the service tax liability on the entries which have been inserted from a specific date cannot be taxed under any other entry prior to such date. It is to be noted that the judgment of the Tribunal in the case of Shipping Corporation of India Ltd was upheld by the Apex Court on an appeal filed by the revenue against the order of the Tribunal. In view of the authoritative judicial pronouncement on the issue we hold that the activity undertaken by the appellant i.e., drilling and blasting in the mi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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