G. S. Atwal & Co. Engineers Pvt Ltd Vs Commissioner of Service Tax (CESTAT Kolkata)
CESTAT Kolkata held that as mining services brought under the service tax net only with effect from 01/06/2007, service tax is not leviable on the same for the period prior to 01/06/2007.
Facts- The appellant provided ‘Mining Services’ to the service recipients during the period 16.08.2002 to 31.10.2006 , but did not pay service tax on such activities and also did not take any service tax registration till 01.06.2007.
The appellant received a Show Cause Notice demanding service tax for the period 16.08.2002 to 31.10.2006. The said demand of service tax was confirmed. Being aggrieved, the present appeal is filed.
Conclusion- In the present case ‘mining services’ were brought under service tax only with effect from 01/06/2017. Hence, for the period prior to 01/06/2007, there was no liability of service tax on’ mining services’.
We also find that Board has issued a Circular in F. No. 232/2/2006-Cx.4 dated 12.11.2007 clarifying the issue. The Circular cited above categorically clarifies that ‘mining services’ were not leviable to service tax prior to 01/06/2007. Accordingly we hold that the artificial bifurcation of the services rendered by the Appellant into Cargo Handling Service, Site Formation Service and Business Auxiliary Service and demanding service tax in the impugned order is not sustainable and hence it is liable to be set aside.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The appellant provided ‘Mining Services’ to the service recipients during the period 16.08.2002 to 31.10.2006 , but did not pay service tax on such activities and also did not take any service tax registration till 01.06.2007.
2. The appellant received a Show Cause Notice vide DGCEI F No. 206/KZU/KOL/ST/06/1757 dated 14.03.2007, demanding service tax for the period 16.08.2002 to 31.10.2006. The demand of service tax was made under the following heads:-
