Service Tax
TRT-2025-
Cestat-Chennai
Date:-09-06-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order Date – 09 June 2022
Facts:
- The Appellant, M/s. AP Enterprises, were issued Show Cause Notice alleging that they have rendered services falling within the definition of ‘Survey and Exploration of Mineral’ service as given under Section 65(105)(zzv) of the Finance Act, 1994.
- Original Authority vide order impugned herein confirmed the demand along with interest and imposed penalty. Aggrieved by such order, the appellant is now before the Tribunal.
- The appellant provided the activity of camp mobilisation and demobilisation in the nature of camp establishment and maintenance, cable laying, shooting and shot hole drilling, centring around oil and gas areas. The activities include construction of sheds, bathrooms, toilets, bunkhouse jacking up, electrical wiring and fitting, erection of water tank and preparation of internal roads and paths.
Issue:
- Whether the activities rendered by the appellant in the nature of camp mobilisation and demobilisation, camp establishment and maintenance, etc., fall within the definition of ‘Survey and Exploration of Mineral’ services or not.
Order:
- The Cestat relied on various decisions and held that activity of the appellant are not in the nature of seismic services and collection/processing, interpretation of data and drilling or testing in relation to survey and exploration.
- The CBEC vide its Circular No.80/10/2004-ST, dated 10-9-2004 has clarified that the service tax under this category would be limited to the services rendered in relation to Survey and Exploration only and not on the activity of actual extraction after the survey and exploration is complete. The transport, refining, processing or production of the extracted products would also be out of the ambit of service tax.
- Therefore, the demand cannot sustain and the impugned order is set aside.
Download Case Law
