ASHOK KUMAR BACHAWAT (HUF) Vs. UNION OF INDIA

JUDGEMENT

(1.) These petitions are directed against an Order -InOriginal issued on 4/3/2016 in Case No.OIO Sl.No.BELEXCUS-000-BLY-DIV-JC-SKM-36/15-16 (ST) dtd. 29/2/2016/4/3/2016 passed by the Joint Commissioner of Customs, Central Excise and Service Tax, Belgaum, confirming a demand of Rs.35,43,585.00 and imposing other penalties.

(2.) Petitioner is a Hindu Undivided Family (HUF) engaged in the business of mineral transportation. Petitioner is registered as a Goods Transport Agency (GTA) under the provisions of the Finance Act, 1994 (for brevity, 'the Act').

(3.) Based on intelligence gathered by the Central Excise Offices, a show cause notice dtd. 18/4/2013 was issued on the premise that the petitioner was providing mining related services classifiable under, 'Mining of Mineral Oil or Gas Services', to M/s. Bharat Mines and Minerals at Sandur, but not registered with Service Tax Authority. Accordingly, petitioner was called upon to show cause as to why the value of Rs.3,25,22,680.00 collected by them should not be treated as taxable value in terms of Sec. 67 of the Act. Petitioner submitted a detailed reply dtd. 4/9/2013 through its Advocate. Petitioner also filed a written submission before the Adjudicating Authority and he was heard through his learned Advocate on 20/1/2016. After hearing, based on the material on record, the 3rd respondent has passed the impugned order holding that the services rendered by the petitioner is classifiable under 'Mining of Mineral Oil or Gas Services', and held that the sum of Rs.3,25,22,680.00 collected by the petitioner as taxable value in terms of Sec. 67 of the Act. Further he confirmed the demand of Rs.35,43,585.00 towards service tax 'inclusive of education cess', payable for the period 1/10/2007 to 31/3/2008 under Sec. 73(2) of the Act. In addition, he confirmed the demand of interest under Sec. 75 of the Act and imposed a penalty of Rs.10,000.00 under Sec. 77(2) of the Act r/w. Rule 7C of Service Tax Rules, 1994 and imposed a further penalty of Rs.35,43,585.00 under Sec. 78 of the Act. It was made clear that the penalty, under Sec. 78 of the Act, would be reduced to 25% of the service tax, provided the entire amount of service tax and the interest thereon and the reduced penalty are paid within 30 days from the date of receipt of the said order. The said Order-in-Original is challenged in this writ petition.