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2024 (1) TMI 335 - AT - Service TaxClassification of services - mining services or Cargo Handling Services/Site Formation Services? - client has issued an work order on 06.06.2005 wherein excavation work in lime-stone mines, transportation of the same and all other related jobs are given to them on a composite contract basis - HELD THAT:- The scope of work given therein consists of various connected activities with the ‘Mining Services’ pertaining to lime-stone mining. The consideration given is on a lump sum basis without any specific bifurcation towards site formation, excavation, over-burden charges, cargo handling charges etc.. Therefore, there are no justification on the part of the Department to arrive at and assume vivisection and bifurcation of the rates, to issue the demand notice. From the show cause notice itself it is seen that for the period till 31.05.2007 they have vivisected the contract and issued the show cause notice under the heading ‘Cargo Handling Service’ and ‘Site Formation Service’ and after 01.06.2007 they have no qualms to accept that the same composite service falls under category of ‘Mining Service’ heading only and demand is made under that heading. Since the Department itself admits that the above carried out by the appellant is that of ‘Mining Services’ w.e.f. 01.06.2007, the demand for the earlier period has been made only to fasten excess Service Tax demand on the appellant. After clearly holding that the Department’s case of breaking of Mining Service into several services is not legal, still he has gone ahead and held that they are liable to pay Service Tax prior to 06.06.2007 under the category of ‘Cargo Handling Services’. The impugned order set aside - appeal allowed.
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