Service Tax Demand Set Aside as Screening & Grading of Iron Ore was Mining Service not BAS

Popular Constructions Vs Commissioner of Central Excise (CESTAT Bangalore) The appeal was filed against an Order-in-Original passed by the Commissioner of Central Excise and Customs, Belgaum, which had classified the appellant’s activity of screening and grading iron ore as “Business Auxiliary Service” (BAS) and confirmed service tax demand along with penalties under Sections 77 and 78 of the Finance Act, 1994. The Department alleged that the activity amounted to processing of ore essential for marketing the extracted ore and was therefore taxable under BAS. The appellant contended that ...