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2020 (1) TMI 639 - AT - Service TaxClassification of services - contract for supply of mud and spreading and dumping of earth on agricultural land - classifiable under site formation and clearance service, excavation, earth moving and demolition service or not - period 01 October, 2007 to 31 March, 2008 - time limitation - HELD THAT:- The services of providing mud and spreading the same was undertaken by the appellant during the period 01 October, 2007 to 31 March, 2008. As per the contract entered by the appellants with M/s Arrow Infra Limited the land in question upon which the mud was to be spread was admittedly agricultural land. Revenue has also not disputed the said fact. As per the definition of site formation and clearance etc, any activity done in relation to agriculture is excluded - Inasmuch as the services in the present case were provided in relation to agriculture, the same has to be held as exempted. Subsequent action by the owner of the land has got no relation to the activities done by the appellant prior to the said conversion. The findings of the Adjudicating Authority that since the agricultural land was subsequently converted into commercial land, the activity undertaken by the appellant prior to the said conversion would become taxable subsequent to conversion of the land, cannot be agreed upon - demand set aside. Time Limitation - HELD THAT:- The demand raised on 22 April, 2013 is barred by limitation. At the time when the appellant provided services, the same were exempted and as such the appellant’s plea that no service tax is required to be paid cannot be doubted. There is no evidence on record to establish that the appellant at the time of providing the services knew that the said land is going to be converted - In such a scenario, the invocation of longer period cannot be upheld. Appeal allowed - decided in favor of appellant.
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