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2015 (1) TMI 388 - AT - Service TaxClassification of service - Scientific or technical consultancy service or Survey and exploration of mineral - penalties under Sections 76, 77 and 78 - Held that:- keeping in mind the activities undertaken by the appellant, the service is classifiable under the Survey and Exploration of Mineral Service - The definition of this taxable service is a service provided by a Scientist or a Technocrat or any Scientific or Technical Institution or Organization. It is clear that the appellants are not a Scientific & Technical Institution or Organization. If we were to accept otherwise, every company which undertakes technical consultancy as many companies do will fall under this definition, which is obviously not correct. Therefore, we hold that the activity undertaken by the appellant is covered under the Survey and Exploration of Mineral services for the entire period. Whether any service has been provided by the appellant for consideration - Held that:- when the activity is undertaken by them on the basis of 100% grant received from the Government and the grant is totally expended on the expenses involved under various activities as reflected in the balance sheet, it cannot be said that any service has been provided. For any service, there has to be a service provider, a service receiver and consideration. In the present case, the records show that no consideration has been paid by the Government to the appellant for undertaking the work of Survey and Exploration of Mineral and preparation of the detailed reports thereof. What has been received from the Government is only the reimbursement of the actual expenses involved. - there has been no service provided by the appellant to the Ministry of Mines. - Decided in favour of assessee.
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