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TMI Blog2023 (12) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant in the case of M/s Integrated Coal Mining Ltd. Vs Commissioner of Central Excise and Service Tax, Bolpur [ 2021 (1) TMI 179 - CESTAT KOLKATA] where it was held that Sizing of coal is an incidental and ancillary process to make coal marketable and thus complete manufacture of coal and to make it into excisable goods as per Section 2(d) of the Central Excise Act. The process of sizing of coal is also therefore outside Section 65(19) of the Act since it is a process in the manufacture of the final product, sized coal. The demands confirmed in the impugned order is not liable to service tax under the category of 'Business Auxiliary Service' - the demands of service tax, interest and penalty confirmed in the impugned ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the purchasers of coal which are generally nomenclated as Fuel Supply Agreement( FSA ). In the FSA entered with NALCO and NTPC, which are power generating companies, the Appellant was required to deliver sized coal with size confirming to the specifications laid down in the agreement which range between 100 mm to 250 mm. The Appellant has recovered consideration for such sizing activity nomenclated as sizing/crushing charges . The term delivered price of coal as per the FSA includes base price of coal as notified by the price notification issued by Coal India Limited and further includes additional charges such as Sizing/Crushing charges, Surface Transportation Charges (STC), Rapid Loading charges/Silo Loading Charges and other statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 31.08.2018 (iii) M/s South Eastern Coalfields Limited v Commissioner of CGST, Customs Excise, Jabalpur in Service Tax Appeal No 50422 of 2017, Final Order No 50317 dated 02.03.23 4. The Tribunal, Kolkata Bench has decided the issue in favour of the Appellant in the case of M/s Integrated Coal Mining Ltd. Vs Commissioner of Central Excise and Service Tax, Bolpur, vide Final Order No.75012/2021 dated 05.01.2021.The same view was earlier taken by the Principal Bench, Tribunal, New Delhi in the case of M/s.Northern Coalfields Ltd. Vs Commissioner of Central Excise and Service Tax, Jabalpur vide Final Order Nos. 51761-51767/2019 dated 05.12.2019 and in the case of South Eastern Coalfields Ltd. Vs. Commissioner of Central Excise an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central Excise Act, for which it was duly registered under the provisions of the Central Excise Act with the jurisdictional Central Excise authorities. Returns under the Act have also been submitted by ICML, which have been finally assessed and differential duty, if any assessed, have also been paid by ICML. 8.3 Further, in case of the period from March 24, 2011 to April 24, 2015 proceedings by issuance of show cause notices were initiated by the jurisdictional Commissioner/Principal Commissioner of Central Excise against ICML alleging undervaluation of the transaction values declared for the said period, of bituminous coal manufactured and cleared from the mine, by non-inclusion of elements, namely, royalty, stowing excise duty, pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest, were demanded and paid by ICML. 9. It is also not disputed that all along ICML has paid value added tax or Central Sales Tax on the coal and shale sold by it to CESC and CPL respectively. 10. In such circumstances, applying the principle laid down by the Supreme Court in Bharat Sanchar Nigam Ltd. Vs. UOI, 2006 (2) STR 161 (SC), since scheme of taxation under the Constitution of India provides for mutually exclusive levies, if certain activity amounts to manufacture , it cannot become or be contended to be service. This issue is no more res integra. 10.1 In the case of Commr. of CE ST Vs. Mahanadi Coalfields Ltd., Final Order No. 76585/2017 dated 21.08.2017 passed in Appeal No. STA/75816/2014, this Bench of the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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