The key points from the legal summary are: 1. The services ...

Mining firm wins tax refund for services before 2007 law change.

December 2, 2024

Case Laws     Service Tax     AT

The key points from the legal summary are: 1. The services provided by the appellant amounted to mining activities and fell within the scope of "mining services" u/s 65(105)(zzzy) of the Finance Act, 1994, introduced on 01.06.2007. 2. The activities were not preparatory work but constituted mining activities per se to win the minerals (lignite). Therefore, they cannot be classified as "Site formation and clearance, excavation and earthmoving and demolition" u/s 65(97a). 3. Following the Supreme Court's decision in Doypack Systems P Ltd, the services related to mining of lignite, which is a mineral, and thus qualified as mining services. 4. The appellant is eligible for a refund of Rs. 4,60,77,978 paid as service tax before 01.06.2007, as the services were not taxable prior to that date. 5. The appellant has crossed the bar of unjust enrichment by providing evidence that the tax burden was borne by them. 6. The appellant is entitled to interest on the delayed refund payment as per Section 11BB of the Central Excise Act, 1944, from the expiry of 3 months from the date of the original refund application. 7.

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