CESTAT Sets Aside ₹352 Cr Service Tax Demand as Coal Mining Held ‘Manufacture’ Not Service

EMTA Coal Limited Vs Commissioner of Service Tax (CESTAT Kolkata) The appeal before the Tribunal concerned a substantial demand of Service Tax amounting to Rs. 352.42 crore (including cess) for the period July 2012 to March 2015, along with interest and penalties. The demand was raised on the allegation that the appellant’s activities relating to coal mining constituted taxable “mining services” under the Finance Act, 1994. The appellant was engaged in the production of coal from mines allotted to various State and Central power utilities. These utilities, lacking expertise in mining ope...