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TMI Blog2024 (12) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... ared by M/s. Maruti Minerals ("appellant" herein) under Voluntary Compliance Encouragement Scheme, 2013 ("VCES" in short) is "substantially false" in terms of sub-section (1) of section 111 of the Finance Act, 2013. 1.1 Briefly the facts are that appellant during the relevant period was engaged in the activity of Mining of limestone which involved raising and sizing of limestone at the mines for which appellant has entered in to contract with Saurashtra Cement Limited, Porbandar (herein after referred to as "SCL"). In terms of the said contract, appellant is required to size the limestone between 25 mm to 120 mm with not more than 5% oversize and not more than 10% of undersize for which consideration is fixed of Rs. 159 per ton. Under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed reply and contested the show cause notice mainly on the ground that transportation charges were not included in the declaration as appellant held bonafide view that the said services fall under Goods Transport Agency (GTA) service which is supported by the fact that SCL has regularly paid Service Tax on said value as consignee under Reverse Charge since 2005 and filed ST 3 returns which has been accepted by department from time to time; that service tax paid by SCL on transportation charges cannot be included in the value of mining service as such transportation activity is a separate service falling under the category of transport of goods by road as clarified by CBEC circular dated 12.07.2007; that for the period 01.01.2013 to 31.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isputedly entire accounts/ records were maintained and all details of transactions were duly recorded by the appellant. 3. Shri Rajesh Nathan, Learned Assistant Commissioner(AR), appearing for the Revenue submitted that transportation of limestone was integral to mining service is clear from contract and in that view value of transportation of limestone under the same contract was required to be included while computing tax dues under VCES. He further reiterated the finding given in the impugned Order of Commissioner. 4. We have heard both sides and carefully considered the submissions made before us. We find that applicable service tax in respect of mining service is paid for the period 1-10-2007 to 31-12-2012 and is not in dispute befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced hereunder: "Mining Service - Applicability of Service tax on activities undertaken in mining sector before 1-6-2007 C.B.E. & C. Letter F. No. 232/2/2006-CX. 4, dated 12-11-2007 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Applicability of Service tax on activities undertaken at mines prior to enactment of the Finance Bill, 2007 - Regarding It may be recalled that vide appropriate entry in the Finance Act, 2007, 'service provided by any person to any other person in relation to mining of minerals, oil or gas' has been comprehensively brought under the ambit of service tax with effect from 1-6-2007. However, for the prior period, certain disputes r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d suitable for such activities. Such services include blasting and rock removal work, clearance of underground, drilling and boring, overburden removal and other development and preparation services of mineral properties and site, and other similar excavating and earth-moving services. Hence, these activities are taxable under the category of site formation and clearance, excavation and earth-moving and demolition service w.e.f. 16-6-2005. 4. Coal cutting or mineral extraction and lifting them up to the pithead : These activities are essential integral processes and are part of mining operations. As stated earlier, mining activity has been made taxable by legislation under the Finance Act, 2007 (w.e.f. 1-6-2007). Prior to this date, suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitially accepted with issuance of discharge certificate, was sought to be rejected and service tax relating to transportation services was demanded for the period 1-10-2007 to 31-12-2012. We find that the clarification with regard to taxability of various activities falling under various categories of services in relation to mining sector has been given by the said circular in view of mining service became leviable to service tax with effect from 1.6.2007. The said circular in no terms is restricted to the period prior to 1.6.2007. It is seen from para 5 of the circular that activity of transportation of mineral is post-mining activity and is chargeable to service tax under the relevant taxable services i.e. "Goods Transport by Road. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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