Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 675 - AT - Service TaxNature of composite works contract - drilling, cross cutting, conventional raising, ramp excavation, long hole blasting, withdrawal of blasted ore etc. w.r.t. underground mines - mining service - It was contended that, after the introduction of mining as taxable service w.e.f. 01/6/2007, the appellants have discharged service tax on these services. It is not legally sustainable to tax the same activity under different category for different periods unless the pre-existing definition for site formation has been changed to create a new taxable service out of that. - inclusion of value of free items supplied by Hindustan Zinc Limited in the taxable value Held that:- in such situation the activities of site formation and clearance are to be treated as an activity ancillary to mining and since the overall contract for mining the contract being indivisible the same should be treated as mining contract. It was also held that w.e.f. 01/6/2007 when the activity of the appellant has been accepted by the Department as mining service, for the period prior to 01/6/2007 the same activity cannot be classified under site formation service. Value of free supply items cannot be held to be charge for services provided by the appellant. Hence following the ratio of decided cases we find the impugned order cannot be sustained on this ground also. Regarding the service tax payable by the appellant under the category of mining services w.e.f. 01/6/07, the admitted fact is that appellants discharged the service tax in full before the issue of show cause notice. - No penalty. Demand set aside - Decided in favor of assessee.
|