Extraction, Crushing, and Sizing of Coal Amounts to Manufacture, Not Liable to Service Tax under...

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that the extraction, crushing, and sizing of coal amount to manufacture and are not liable to service tax under mining services. This significant clarification distinguishes between manufacturing processes and pure service activities in the mining sector. CESTAT's decision means that activities leading to the transformation of raw coal into a usable product are considered manufacturing, thereby exempting them from service tax applicable to mining services. This provides clarity on taxability for companies involved in coal processing.