9911796707
TMI Blog2024 (9) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... at the appellant have provided any mining service. The appellant is admittedly a transport contractor providing transportation service. The 3 CD report under Income Tax also shows that the appellant is a transport contractor. As per the 26-AS, the deduction of TDS made by the service recipient is under Section 197 C of the Income Tax which is applicable in case of transportation service. Therefore, in one hand, the revenue could not produce any evidence to establish that the appellant have provided the mining service whereas all the books of account and other documents produced by the appellant shows that they being a transport contractor provided the transportation service of mined goods. Therefore, the appellant s activity cannot be class ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ak , Chartered Accountant for the Appellant Shri P Ganesan, Superintendent ( AR ) for the Respondent ORDER RAMESH NAIR The issue involved in the present case is that whether the activity of the appellant for the period 2009-2010 to 2013-2014 falls under the category of mining service as claimed by the department or transport service as submitted by the appellant and whether the same is liable to payment of service tax. The case of the department is that during the course of audit of records of M/s. Ashapura International Ltd and M/s. Ashapura Minechem Ltd it was found that they have availed the service of mining, digging of materials from the appellants at their mining site for which they have made payments to the appellant which falls unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke it mining service because the nomenclature transportation income is not used. He submits that the appellant has studied upto 2nd Standard and he was not well versed with accounting terminology or service tax related provisions but he was advised that such service of mere transportation of goods does not attract any service tax. As per this bonafide belief the appellant has not taken the registration and not paid the service tax, therefore, there is no suppression or intent to evade service tax and all the income was reflected in his books of accounts. 2.4 He further submits that on the payment received by the appellant towards transportation, the service recipient has deducted tax at source under Section 197 C of the Income Tax Act on tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per the 26-AS, the deduction of TDS made by the service recipient is under Section 197 C of the Income Tax which is applicable in case of transportation service. Therefore, in one hand, the revenue could not produce any evidence to establish that the appellant have provided the mining service whereas all the books of account and other documents produced by the appellant shows that they being a transport contractor provided the transportation service of mined goods. Therefore, the appellant s activity cannot be classified under mining service. 4.2 The appellant have also relied upon the board circular F.No. 232/2/2006-CX.4 dated 12.11.2007 wherein at paragraph 5 the board has clarified that transportation of mineral from pithead to a spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd (Supra) wherein the demand was set aside on merit as well as on limitation. The relevant paras are reproduced below:- 19. The next issue raised by the Appellant is that the demand has been confirmed on the basis of the data received from Income-tax department. No effort was made by the department to ascertain whether the amount received by the Appellant was on account of rendering of any taxable service on which the Appellant was liable to pay service tax. There is no finding in the impugned order to this effect. We observe that there is no new material evidence brought on record for raising the demand of service tax on the value mentioned in the records received from the Income-tax department. The demand cannot be raised merely on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
