Service tax – Cestat Kolkata: Transport activities in the mining area are not mining service instead is GTA service, hence cannot be included in the valuation for mining services: Appeal dismissed. [Order Attached]
Order Date – 4 August 2022
- The Respondent, M/s. Tycoons Industries Private Limited, are working inside the mining area as per an agreement entered into with M/s. Tata Steel Limited (TSL) covering the period 2009-10 to 2011-12.
- The Department filed an appeal against the Original Order dated 23.03.2015 passed by the Commissioner of Service Tax-1, Kolkata wherein he dropped the demand of Service tax amounting to Rs. 7,18,33,115/- on Mining services under section 73(1) of the Finance Act, 1994 by holding that the activity of transportation within the mines as per the work orders cannot be classified as mining services.
- The Department is in appeal on the ground that the Respondents have provided mining services in terms of Section 65(23) read with Section 65(105)(zzp) of Finance Act, 1994 to M/s. TSL and hence have demanded Service tax on the gross amount received by the Respondent on the above activities.
- Whether the activity of the Respondent merits classification under GTA services or under mining services?
- The Tribunal observed that it has not been disputed by the Appellant Revenue that the transport activities have been performed within the mining area of TSL.
- Therefore, respectfully relying on SC case Raipur v. Singh Transporters the Tribunal held that that the transport charges cannot be included in the valuation for mining services and thus the order of the Ld. Adjudicating authority is correct in the eyes of law.
- Therefore, the departmental appeal is dismissed in entirety.