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2017 (12) TMI 1380 - AT - Service TaxClassification of services - Site formation services or mining services - scope of work - Held that: - The scope of work mentioned covers providing all equipment, manpower, tools and tackles as stated under Clause 8 of this LOI. Admittedly, the appellants have processed excavated boulders to required size for use by the clients. The contract indicates that it is part of the Rajasthan Road Project Package RJ-7 - it is well settled position that such type of contracts were there is an extraction or raising of ore or mineral, the same cannot be considered as site formation service. In the present case, there is an excavation or extraction of boulders for further process. Regarding tax liability post 1.6.2007 under category of “mining service”, the appellants did undertake the process of excavating the boulders. However, substantially, there are further process involved on such excavation to make fit for client - the essence of the contract is to supply the required quantity of the specified size bounders to the client as per required quantity per day. As such, these are more properly covered under the tax entry “Business Auxiliary Service”. The scope of the term “manufacture” has no direct relevance to the issue at hand. Appeal allowed - decided in favor of appellant.
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