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2018 (6) TMI 1008 - AT - Service TaxClassification of Services - Site formation and clearing services or mining services? - taxability of the activities prior to 1st June 2007 - Held that:- All activities in relation to mining was brought under levy of service tax with effect from 1st June 2007. Further, there can be no doubt that activities in connection with mining that were specifically taxable prior to that date could not escape the levy merely because of a new service – composed of various activities some of which were separately taxable - having been incorporated from a particular date. ‘Site formation and clearance’ is a necessary pre-requisite for extraction from mines and section 65 (97a) of Finance Act, 1994 is not a restricted definition of this activity. Water sprinkling is an activity that is required to prevent the dispersal of dust not just at the mines but in the surrounding area. It cannot, therefore, be held, as the adjudicating authority has, that this, being essential for mining operation, is to be treated as provision of ‘mining service’ or ‘site formation and clearance service.’ The supply of fuel/lubricant has been sought to be taxed in the impugned order for the latter period merely because the supply was to a mining location and for the earlier period by association of ‘site clearance and formation service’ with the subsequent tax levy. The total income from mining is thus intended to brought within the scope of the levy without considering whether any part of the income is generated from activities that are outside the scope of taxation in section 65 (105) of Finance Act, 1994. Appeal allowed - decided in favor of appellant.
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