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2018 (11) TMI 175 - AT - Service TaxClassification of Services - Site Formation and Clearance, Excavation and Earthmoving and Demolition Services or not? - removal of Carbonaceous Shale and Hard Shale from the mining area upto the railways siding as per the terms of the contract - demand of Interest and penalties. Held that:- In terms of the contract awarded by M/s North Eastern Coal Fields, Coal India Ltd., Assam, the activities carried out by appellant were for production of Carbonaceous Shale (CS) as well as transportation of Hard Shale (HS) from the mining area upto the railways siding - The service tax was not initially paid by the assessee, but what amount they received from M/s North Eastern Coal Fields, Coal India Ltd., Assam, the same has been paid to the Government Account. In the present case, the appellants were no doubt under bonafide belief that the activity may not be liable for payment of service tax as the activity of mining was included as a separate service tax w.e.f. 01.06.2007 only. Keeping in view the disputed nature of service tax and bonafide belief of the assessee, we are of the view that this is a fit case to waive penalties under Section 80 of the Finance Act, 1994 - demand of interest upheld. The issue is decided in the case of NATIONAL MINING CO. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, DIBRUGARH [2007 (10) TMI 227 - CESTAT, KOLKATA], where the Kolkata Bench of the Tribunal, while upholding the payment of service tax, has sustained the order for payment of interest, but waived penalty. Interest upheld - penalty waived - appeal allowed in part.
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