Discharge of tax liability under one law precludes the invoking of another law

IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL,
EAST REGIONAL BENCH : KOLKATA

Service Tax Appeal No.75388 of 2014
(Arising out of Order-in-Original No.38/Commr./BOL/13 dated 19.12.2013 passed by Commr. of Central Excise & Service Tax, Bolpur)

Commr. of Central Excise & S.Tax, Bolpur
Nanoor Chandidas Road, SIAN, Bolpur, Dist, Birbhum

Appellant

VERSUS

M/s Integrated Coal Mining Ltd.
6, Church Lane, 1st Floor, Kolkata-700001

Respondent

Appearance :
Shri K.Chowdhury, Authorized Representative for the Appellant
Dr.Samir Chakraborty, Sr.Advocate, Shri Arnab Chakraborty, Advocate and
Shri Abhijit Biswas, Advocate for the Respondent

CORAM:
HON’BLE SHRI P. K. CHOUDHARY, JUDICIAL MEMBER
HON’BLE SHRI P. ANJANI KUMAR, TECHNICAL MEMBER

FINAL ORDER NO.75012/2021
DATE OF E-HEARING : 15.10.2020
DATE OF PRONOUNCEMENT : 05 January 2021

Per P.K.Choudhary :

1. This appeal filed by the Revenue is against the Order-in-OriginalbNo.38/Commr/BOL/13 dated December 19, 2013 passed by the Commissioner of Central Excise and Service Tax, Bolpur, whereby the Commissioner was pleased to drop the proceedings initiated against Integrated Coal Mining Ltd. (“ICML”) vide show cause notice dated 23.08.2012. The Commissioner held that sized coal is an excisable product and sizing operation is an activity incidental and ancillary to the completion of a manufactured product and since the value of sizing is includible and has been included in the assessable value of coal sold to the customers, CESC Ltd. and Cresent Power Ltd. by ICML, sizing of coal cannot be termed as a service taxable under the heading 'Business Auxiliary Service' in terms of the Finance Act, 1994 (“the Act”).

2. The facts of the case in brief are:
(a) ICML is engaged in the business of mining and sale of coal classifiable under Chapter Heading 27011200 of the Central Excise Tariff. Pursuant to allocation of a coal mine block by the Government of India, Ministry of Coal, for mining of coal, ICML was granted mining leases by the Government of West Bengal, in accordance with the relevant statutory provisions in this regard, for extraction of coal from the said block, known as the Sarshatali Coal Mine.

(b) On August 14, 2002 ICML entered into an agreement with CESC Ltd., Kolkata, to mine coal from the said mines and to sell the same to CESC Ltd. (“CESC”) for use in its power projects on terms and conditions specified in the agreement.

(c) Similar agreement was subsequently entered into by ICML with Crescent Power Ltd. (“CPL”), a wholly owned subsidiary of CESC on March 30, 2010, for sale of certain inferior quality coal, commonly known as “carbonaceous shale” or “shaly coal” (hereinafter referred to as “carbonaceous shale”) from the said coal mine to CPL, on terms and conditions specified in the said agreement dated 30.03.2010.
 

Please refer to the attached file for details.