Case Details: Principal Commissioner, CGST South Commissionerate, New Delhi vs. Aryan Coal Benefications Pvt. Ltd. (2025) 34 Centax 403 (Tri.-Del)
Judiciary and Counsel Details
- Member (J) & Member (T) Binu TamtaHemambika R. Priya
- Ms Jayakumari, Authorised Representative, for the Appellant.
- S/Shri Sumit Goel, Satish Kumar Sharma & Abhishek Thakral, Advs., for the Respondent.
Facts of the Case
The assessee, engaged in coal beneficiation and washing, was subjected to a demand under the category of ‘Business Auxiliary Services’. The Department of Revenue contended that the activity of coal washing constituted a taxable service in relation to mining of minerals. It wa submitted that such activity was not leviable to service tax prior to 01-06-2007, relying on the statutory definitions under Section 65 of the Finance Act, 1994. The matter was accordingly placed before the CESTAT.
CESTAT Held
The CESTAT held that the activity of coal beneficiation and washing qualified as a taxable service in relation to mining of minerals only with effect from 01-06-2007. Therefore, no demand could be validly raised for the period prior to 01-06-2007 under the category of “Business Auxiliary Services.” The Tribunal dismissed the Department’s appeal and confirming that the impugned demand was unsustainable.
List of Cases Cited
- Aryan Coal Benefications Pvt. Ltd. v. Commissioner — 2013 (29) S.T.R. 74 (Tribunal) — Relied on [Paras 6, 8]
- Aryan Energy Pvt. Ltd. v. Commissioner — 2009 (13) S.T.R. 42 (Tribunal) — Relied on [Paras 6, 8]
- Spectrum Coal & Power Ltd. v. Commissioner — 2012 (28) S.T.R. 510 (Tribunal) — Relied on [Paras 6, 8]
- Global Coal and Mining Pvt. Ltd. v. Commissioner — 2020 (36) G.S.T.L. 77 (Tribunal) — Relied on [Para 9]
- Indian National Shipowners’ Association v. Union of India — 2009 (14) S.T.R. 289 (Bom.) — Relied on [Para 9]
