Custom, Excise & Service Tax Tribunal
Maheswari Enterprises & Ambika ... vs Kolkata-Ii on 17 February, 2026
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL,
EAST REGIONAL BENCH : KOLKATA
Court No.1
Service Tax Appeal No.76536 of 2017
(Arising out of Order-in-Original No.01/Commr./C.Ex.-Audit II/Kol/17 dated
19.05.2017 passed by Commissioner of CGST & Central Excise, Kolkata)
M/s Maheswari Enterprises & Ambika Enterprises (JV)
(21, CLM Lane,PO-Raniganj, Dist.-Burdwan, West Bengal-713347)
Appellant
VERSUS
Commissioner of CGST & Central Excise, Kolkata
(180, Shantipally, Rajdanga Main Road, Kolkata-700107)
Respondent
Appearance:
Shri Kartik Kurmy, Advocate for the Respondent Shri P.Das, Authorized Representative for the Appellant CORAM:
HON'BLE MR.ASHOK JINDAL, MEMBER (JUDICIAL) HON'BLE MR.K.ANPAZHAKAN, MEMBER (TECHNICAL) DATE OF HEARING : 17 FEBRUARY 2026 DATE OF DECISION : 17 FEBRUARY 2026 FINAL ORDER NO.75258/2026 Per Ashok Jindal :
The appellant is in appeal against the impugned order demanding service tax under the category of "Site Formation and Clearance, Excavation, Earthmoving and Demolition Services".
2. The facts of the case in brief are that the appellant is engaged in the activity of Work Contract Service providing construction/sinking of shaft etc. at the mines during the period April, 2011 to March, 2015 and paying service tax under the composition scheme. The activity of construction and sinking of shaft consist mainly, civil construction, Fabrication, Erection, Commissioning and Installation of capital equipment, engineering, with incidental, drawing, designing, Excavation etc. 2 Service Tax Appeal No.76536/2017 2.1 The Revenue is of the view that the proper classification of the said services falls under "Site Formation and Clearance, Excavation, Earthmoving and Demolition Services".
2.2 Therefore, the proceedings were initiated against the appellant to demand service tax under the category of "Site Formation and Clearance, Excavation, Earthmoving and Demolition Services" under Section 65(105(zzzza) read with Section 65(97a) of the Finance Act, 1994 for the period from April, 2011 to March, 2015 by issuance of show-cause notice dated 08.11.2016 by invoking extended period of limitation.
2.3 The matter was adjudicated. The demand of service tax was confirmed under the category of "Site Formation and Clearance, Excavation, Earthmoving and Demolition Services". 2.4 Against the said order, the appellant is before us.
3. The ld.Counsel for the appellant submits that as their activity includes civil construction, erection, commissioning, installation, fabrication etc., in that circumstances, the proper classification of the service is "works contract service" and they are paying service tax accordingly. In view of that, the demand under "Site Formation and Clearance, Excavation, Earthmoving and Demolition Services", is not sustainable.
3.1 It is his further submission that the issue is squarely covered by the decision of the Hon'ble Apex Court in the case of Commissioner of Central Excise & Customs, Kerala Vs. Larsen & Toubro Ltd. reported in 2015 (39) STR 913 (SC).
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Service Tax Appeal No.76536/2017 3.2 He further submits that post 01.07.2012, the activity undertaken by the appellant, covers under Section 66B(54) read with Section 66E(h) of the Act and paid the service tax under reverse charge mechanism under Sl.No.9 of Notification No.30/2012-ST dated 20.06.2012. Therefore, he contested that the demand against the appellant is not sustainable by invoking extended period limitation.
4. On the other hand, the ld.A.R. for the Revenue, has supported the impugned order.
5. Heard both the parties and considered the submissions.
6. We find that in this case, the appellant has provided the Works Order in detail, which are as under :
Sl. Work Order No. Client Scope of work Material supplied Material Taxable value Service Tax Paid No. & Date by the Appellant supplied by the as per SCN under work Client contract service (4) (5) (7) (1) (6) (2) (3)
1. GM (Tech)/VS M/s Manganese Ore Sinking of vertical shaft, supply Cement, 19,79,42,775.00 59,36,750.00 /Mun/10-11/ India Ltd. Erection of Head Gear, Sand, Bricks, 656 dated 23- Design, Supply, Erection Grits, Winder with 04-2010 & Commissioning of D.C accessories, Rope Winder and all other Cappel/Rope, (Page 138) allied works for Munsar Sheave Wheel Mine of MOIL. Groove, M.S.Rod, Paints etc. and Steel for buntons, guide rails and other structures items, electrical cables etc.
2. ED(Tech)/ M/s Manganese Ore Sinking, Lining and Suspension Gear, steel for 1,53,95,652.00 5,08,220.00 Mun/Service India Equipping of Service Sheave Wheel, buntons, Guide Winze/W.O./12 Winze with Hoisting Groove, Winze, Rails and other
-13/72 dated arrangement, Head Gear Cement, Sand, structurual 14-05-2012, 31- and allied works at Bricks, Grits, items free of 05-2012 Munsar Mine. Winch with cost accessories, (Page 149) Suspension Gear, Sheave Wheel, M.S.Rod, Paints, Groove, steel for RCC
3. ED(Tech)/ M/s Manganese Ore Deeping of Holmes Shaft Cement, Sand, Telephone 9,72,03,619.00 24,02,873.00 BGT/Holme India and other allied work at Bricks, Grits, Cable Shaft/W.O./271 Conveyor, Swing 4 Service Tax Appeal No.76536/2017 /316 dated 23- Bhalaghat Mines. Chute, Hudraulic 08-2012, 14-09- Electricals, 2012 Control, Panel, Steel for RCC, (Page 158) Winder with accessories, Sheave Wheels, Electric Winches, complete loading system with all equipments & accessories, Paints, cable, etc.
4. ED(TECH)/2004- M/s Manganese Ore Vertical Shaft Sinking, Steel for RCC, Steel for 2,36,67,604.00 10,51,520.00 05/30 dtd. 10- India Ltd. Lining, Equipping and Cement, Sand, buntons, guide 05-2005 Furnishing at Gumgaon Stone, M.S.Rod, rails, cage keps Mine. Paints and headgear (Page 17)
5. RC.178 dated M/s Singareni Drivage of two no. of Roof Bolts with Cement, Steel 14,82,524.00 61,080.00 30-11-2007 Collieries Company Inter Seam Tunnels. bearing plates, sections and Ltd. Coarse Rubble plates, Steel (Page 205) Stone, reinforcement Steel/Structural rods, Pipe & it's supports, Sand, fittings along Stones etc. with it's accessories, Explosives, Detonators, Short Firing Cables on cost recovery basis
6. 7600005108 M/s Singareni Drivage of two Inclined Cement, Sand, Explosive, 84,24,808.00 2,08,261.00 dated 07-08- Collieries Company Tunnel at Kasipet Mine, Bricks, Grits, PCC, Denoagainst 2013 Ltd. Mandamarri Are. RCC Slabs etc. cost recovery basis (Page 284)
7. GM(G)/SECL/ M/s South Eastern Drivage of 02 No. of Cement, Sand, Explosives and 30,46,891.00 75,319.00 BSP/WO/ Coalfield Ltd. Incline Shafts, Cross Stone, M.S.Steel Short firing BSPR/2008/ 45 Section 4.80X3.00 MTR., etc. Cables against dated 27-12- including open cost recovery 2008 excavation, walling & basis roofing at Kelki Project (Page 301) of Bishrampur.
8. GM(C)/SECL M/s South Eastern Drivage of 03 no. of Cement, Sand, Explosives and 4,24,88,558.00 19,71,103.00 /BSP/WO/ Coalfield Ltd. incline shaft including Stone, M.S.Steel Short firing SGP/2008/43 open excavation, walling etc. Cables against dated 14-10- & roofing at Khalraha cost recovery 2008 Project of Sohagpur.
9. MCL/GM(TA)NT M/s Mahanadi Coal Construction of Incline Cement, Sand, Explosives, 46,07,064.00 20,25,773.00 R/WO/2010/87 Fields Ltd. Mouth & Incline Drivage Stone, M.S. Steel Detonator and 2 Dated 23-12- of Natraj Incline No.1 & etc. Power against 2010. 2, Talcher Area, MCL. cost recovery (Page 324) 10 MCL/HQ/SBP/G M/s Mahanadi Coal Sinking of Air Shaft with Cement, Sand, Explosive, 1,08,18,192/- 3,74,417/-
. M(CMC)/LOA/2 Fields Ltd (Sob lining, construction of Stone, Steel etc. Detonator and 008/1274 Dated Contract received shaft collar, shaft inset, Power against 30-07-2008. from M/s fan drift and fan house cost recovery Subcontract Technomine at Talcher West by MCL 5 Service Tax Appeal No.76536/2017 vide agreement Construction Ltd). underground project of dated 25-06- Talcher Area.
2009(Page 332) 11 GM(C)/SECL/BS M/s South Eastern Drivage of 2 Nos. Incline Cement, Sand, Explosives, 1,81,30,337.00 8,30,305.00 . P/WO/ Coalfield Ltd. Drift. 2 Nos. Vertical Stone, M.S. Steel Detonator and Shaft and Construction etc. Power against BKP/2011/35 of 2 Nos. RCC Strata cost recovery dated 11-04- Bunker of 400 Te basis 2011. capacity each at Charcha East Block of Charcha (Page 349) Mine (RO) at Baikunthpur Area, SECL.
12 GM(C)/SECL/ M/s Sourth Eastern Construction of "Drivage Cement, Sand, Explosives, 2,08,48,898/- 10,15,946/-
. BSP/WO/BKP/2 Coalfields Ltd of 2 Nos. Incline Drift. 2 Stone, M.S. Steel Detonator and
011/37 dated Nos. Vertical Shaft and etc. Power against
02.05.2011 Construction of 2 Nos. cost recovery
RCC Strata Bunker of basis
(Page 353) 400 Te capacity each at
Charcha East Block of
Charcha Mine (RO) at
Baikunthpur Area, SECL".
TOTAL 48,54,56,922/- 1,64,61,560/-
On going through the scope of work, we are of the view that the said activity is more akin to "Works Contract Service" as the same involves supply of service as well as materials together in the execution of the composite contracts. In that circumstances, the appellant has rightly classified their service under "Works Contract Service" and paid service tax thereon.
7. Further, we take note of the fact that post 01.07.2012, the activity do not qualify under Section 66B(54) read with Section 66E(h) of the Act and the appellant has rightly paid service tax under composite scheme/partial reverse charge mechanism under Sl.No.9 of Notification No.30/2012-ST dated 20.06.2012. 6
Service Tax Appeal No.76536/2017
8. In view of the above, we hold that the impugned proceedings are not sustainable against the appellant. Therefore, we set aside the impugned order and allow the appeal with consequential relief, if any.
(Operative part of the order was pronounced in the open Court) (Ashok Jindal) Member (Judicial) (K.Anpazhakan) Member (Technical) mm