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2016 (11) TMI 492 - HC - Service TaxSuppression of facts - extended period of limitation - Claim of exemption - Section 65 (97a) and 65 (105) (zzza) - Held that: - The words drilling, digging, repairing, renovating, or restoring are all connected with the work water sources or water bodies, therefore, three items which are excluded are: (1) agriculture; (2) irrigation; and (3) watershed development and work related to water sources or water bodies. There is an agreement of assessee with a company SICCL engaged in development of residential and other buildings, colonies and township. Levelling work of levelling soil including filling of gorges/nallah removing of shrubs, grass and rubbish etc. was for the purpose of development of his site Sahara City Homes, Amritsar. The total area of work was for 24 acres approximately. Levelling of soil in the context of work done at the instance of SICCL was not for agriculture or irrigation but it was connected with development of a township/residential scheme of Sahara City Homes, Amritsar. The condition of land at the time of work was carried, was also not relevant. When work agriculture/irrigation has been used in contradiction to the other works, which are included in taxable service, the message is very clear that here the agriculture means simple cultivation of soil and earth of animals which is primarily connected with simple agricultural work. When an agricultural land is taken and development work like soil levelling etc. is carried out for the purpose of development of township etc., then it cannot be said that work of levelling of soil etc. is connected with agriculture or can be said to be an agricultural work at all. Assessee is also not engaged in the work of agriculture simpliciter. An attempt was made that agricultural work should be read as agricultural land but we find no reason for such reading of relevant provision as quoted above. Section 65 (97a) is in respect of service and not to the nature of project, land or other things. Appellant-assessee is not exempted from service tax as claimed - assessee does not disclose the work at all and there was a clandestine suppression of facts on his part, therefore, extended period of limitation was available to the Revenue - Appeal dismissed - decided against appellant-assessee.
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