Page 119 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] GLOBAL COAL & MINING PVT. LTD. v. COMMISSIONER OF SERVICE TAX, DELHI 77
interest on interest being compensatory in nature is not sustainable. Since, it
technically is interest on interest it cannot be called as compensation suo motu,
nor has been so prayed by the appellant himself.
In view of this discussion, we answer the afore framed question in fa-
vour of Revenue.
9. Now coming to the alternate argument of the Appellant that from
the amount of refund sanctioned since there is an interest liability, the amount
should be first adjusted towards the interest liability. It is observed that this rule
of first appropriating the interest is applicable only to the debts or to the decree-
tal amount. The case law as relied upon by the appellant is also either qua debts
or qua the decreetal amount. Hence, the same is not applicable to the present case
of refund of indirect taxes. The said rule of interpretation is otherwise contained
in order 21 Rule 1 of Civil Procedure Code relating to execution of decrees for
recovery of money. Such a provision stands absolutely excluded from the Central
Excise Act, 1944. Further, Hon’ble Apex Court in the case law relied upon by the
Appellant i.e. in the case of V. Kala Bharathi (supra) has rather clarified that, “after
such appropriation the decree holder is entitled to interest only to the extent of unpaid
principal amount. Hence, the interest be calculated on the unpaid principal amount.”
This clarification stands unsatisfied by the Appellant in the present case. Hence,
the second line of argument of Appellant is also opined not applicable to the giv-
en set of facts & circumstances.
10. In view of entire above discussion, we do not find any infirmity in
the orders under challenge. Accordingly, same are upheld hereby. Three of these
appeals, consequently, stand dismissed.
(Pronounced in the open Court on 31-10-2019)

_______

2020 (36) G.S.T.L. 77 (Tri. - Del.)
IN THE CESTAT, PRINCIPAL BENCH, NEW DELHI
[COURT NO. I]
Justice Dilip Gupta, President and Shri Bijay Kumar, Member (T)
GLOBAL COAL & MINING PVT. LTD.
Versus
COMMISSIONER OF SERVICE TAX, DELHI
Final Order No. ST/A/51165/2019-CU(DB), dated 25-7-2019 in Appeal
No. ST/52650/2015-DB
Mining service - Beneficiation of coal - Beneficiation of coal whether
part of mining or covered under Business Auxiliary Services - In all enact-
ments relating to coal mining, washing of coal (beneficiation) treated as part of
mining activity - Washing an integral part of a mine as it involves ancillary
process - Beneficiation of coal definitely part of mining activity - Mining ser-
vice came into effect from 1-6-2007, washing of coal liable only from 1-6-2007 -
For period prior, Service Tax not leviable under Business Auxiliary Services -
Sections 65(19) and 65(105)(zzzy) of Finance Act, 1994. [para 16]
GST LAW TIMES  7th May 2020  119