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2018 (7) TMI 1942 - AT - Service TaxClassification of services - site preparation services or mining services? - appellants entered into an agreement with M/s Bisra Stone Lime Company Ltd. on 13.11.2001 for the purposes of raising of limestone - HELD THAT:- The agreed composite rate as per the agreement between both the parties to the contract for all the activities done by the appellants and no separate break-up is available either in the contract or in the bills raised. In view of the facts on record, it cannot be said that the appellant is mainly undertaking site preparation and not the activities relating to mining of limestone is done. It can also not be said that the site preparation is the essential character of the composite services rendered by the appellants. Service tax on “site preparation services” can be levied if there is a service contract simplicitor to that effect. However, once the contract is a composite contract for the entire activities from site formation to segregation to boulders then the same has to be charged as a separate service under the category of “mining services”, which was made chargeable to service tax w.e.f. 01.06.2007. Such operation under a composite contract cannot be treated as “site formation” before 01.06.2007. Appeal allowed decided in favor of appellant.
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