Mining Classification and Vivisection

In a dispute involving pre-01.06.2007 activities, the Tribunal upheld that overburden removal, excavation, and loading of lignite formed an integral part of mining operations and could not be vivisected to fit within “site formation services.” 

Since “mining services” became taxable only from 01.06.2007, the demand for earlier periods was held unsustainable. The ruling affirms the doctrine that introduction of a new taxable entry indicates prior non-taxability and that composite contracts must be assessed based on their essential character.