S.S.N Constructions Vs Commissioner of Central Excise (CESTAT Hyderabad)
Summary: The Customs, Excise and Service Tax Appellate Tribunal, Hyderabad set aside the demand of service tax of Rs. 90,30,059/- along with applicable interest and penalties under Sections 77 and 78 of the Finance Act, 1994, holding that the appellant’s integrated activities of excavation, loading, transportation and unloading of limestone within the mining area could not be classified as “Cargo Handling Service”.
M/s S.S.N Constructions was engaged by M/s Madras Cements Ltd. to undertake excavation, loading, transportation and unloading of limestone from the mine face to the crusher situated within the mining lease area. With the introduction of the taxable service of “Mining of Mineral, Oil or Gas” with effect from 01.06.2007, the appellant obtained service tax registration and discharged service tax under that category. The dispute related to the earlier period from February 2005 to December 2009. A Show Cause Notice dated 25.03.2010 proposed classification of the activities under “Cargo Handling Service” and invoked the extended period of limitation.
In the earlier round of litigation, the Tribunal, by Final Order No. 764/2012 dated 26.12.2012, had set aside the adjudication order and remanded the matter for fresh consideration, particularly regarding whether the very activities which were accepted as “Mining Service” from 01.06.2007 could be classified as “Cargo Handling Service” for the preceding period. The Commissioner nevertheless reconfirmed the demand under Cargo Handling Service, resulting in the present appeal.
