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TMI Blog2025 (4) TMI 1541X X X X Extracts X X X X X X X X Extracts X X X X ..... d iron ore and transporting the same to the screening point for screening by machines installed by principal mine owners and managed by them. After screening, the appellant made weighment of the goods and raising bills for payment for such quantity at the screening point. 3. A Show Cause Notice was issued to the appellant on 30th July, 2012 for the period from April, 2007 to May, 2007, on the basis of an audit, alleging that the appellant, during the impugned period, has provided business auxiliary services. 4. The ld. adjudicating authority, in the impugned order, has held that the activity of the appellant is classifiable under the category of "business auxiliary service" under Section 65(19) (v) of the Finance Act, 1994, which prescrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions, the appellant prayed that the impugned order be set aside. 11. On the other hand, the Ld. Authorized Representative of the Revenue supported the impugned order. 12. Heard the parties. 13. We find that the activity undertaken by the appellant is 'recovery of embedded iron ore and transporting the same to screening point for screening by machines installed by the mine owner and managed by them' and after screening, the appellant was making weighment of the goods and raising invoices on such quantity at the screening point. If the Revenue is of the view that the appellant has undertaken any process and the goods became of a different name and identity, then the said activity amounts to 'manufacture'. 14. Further, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivity undertaken by the respondents more appropriate is classifiable under the category of mining services and during the relevant time, mining services were not liable for service tax, therefore, he dropped the proceedings. Against that order, the Revenue is in appeal." and this Tribunal held as under: - "6. On careful consideration of the submissions of both sides, we find that in the show-cause notice or during investigation, it is alleged against the respondents that they are engaged in the activities mentioned above under a composite contract and the contract is not divisible and in the facts and circumstances of the case, the respondents activity is classified under Business Auxiliary Service. We have gone through the activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rincipal supply. 3.3 Section 65A states the principles for classification of taxable services. Classification of a composite service is based on that component of the service which gives the essential character. There is a need to determine whether a given transaction is the one containing major and ancillary elements or the one containing multiple and separate major elements. In the case of a transaction containing a major and ancillary elements, classification is to be determined based on the essential features or the dominant element of the transaction. A supply which comprises a single supply from an economic point of view should not be artificially split. The method of charging or invoicing does not in itself determine whether the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them the essential character, insofar as this criterion is applicable:" 8. From the above, guideline laid down by the Board's Circular and as per the provision of Section 65A, the classification of service under composite contract is appropriately classifiable under mining service. The said mining services were not taxable services during the relevant period. By way of this, the Revenue is trying to divide the contract which is not the case in the showcause notice. Therefore, division contract cannot be permitted at this stage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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