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2018 (11) TMI 31 - AT - Service TaxClassification of services - composite mining contract - contract with M/s. TISCO was also for consolidated mining activities - whether classified as mining services or as Cargo Handling services? - adjudicating authority has picked up two of the activities for charging service tax under the categories of “Business Auxiliary Service” for crushing of ore lumps as well as “Cargo Handling Service” for transportation of stock. Held that:- It is to be noted that the contract is not a service contract simplicitor either for crushing or for transportation of material. It is a composite contract encompassing all the activities listed therein. When the entire scope of the contract is considered, it is evident that this will be covered only within the category of mining which has been included as a separate service w.e.f. 01.06.2007. The Tribunal in the case of Hazaribagh Mining & Engineering P. Ltd. vs. C.C.E., C. & ST, BBSR-I [2016 (12) TMI 1131 - CESTAT, KOLKATA] have considered a similar composite mining contract which was made chargeable to service tax under different categories. The Tribunal held that once the contract is a composite contract for the entire activities from site formation to segregation of ores then the same has to be charged as a separate service (Mining Services), which was made chargeable to service tax w.e.f 01.06.2007 only. Vivisecting the composite contract and charging service tax on different components of the contract individually under different services is not justified - demand set aside. Contract with M/s. B.K.Coalfields - Site formation services or not? - Held that:- After perusal of all documents, he has concluded that the activities are nothing but mining services which are chargeable to service tax only w.e.f. 01.06.2007 - there is no infirmity in the view taken by the adjudicating authority that the activities carried out under M/s. B.K. Coalfields Ltd contract also will not be liable to vivisected and charged to service tax under individual categories. Appeal dismissed - decided against Revenue.
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