Dept classifies Transport Contractor as Mining Service Provider without Proper Evidence: CESTAT sets aside Service Tax Demand

The CESTAT set aside a service tax demand issued to a transport contractor who was wrongly classified as a mining service provider. The tribunal observed that the Department had failed to provide any substantial evidence linking the contractor’s activities to mining services. Instead, the contractor was engaged in transportation-related activities, which fall under a different tax category. Since the Department could not support its claim with proper documentation or justification, the tribunal quashed the service tax demand.