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2021 (11) TMI 70 - AT - Service TaxClassification of services - Mining of Mineral, Oil or Gas Service or Survey and Exploration of Mineral Oil and Gas Service - Business Auxiliary Service or not - activity of gas compression carried out by the appellant for their clients - associated commission received by the appellant - manpower recruitment and supply service - period prior to 01.06.2007. Demand under the head of Survey and Exploration of Mineral Oil and Gas Service - HELD THAT:- The exact nature of the activity undertaken by the appellant in each contract needs to be examined to ascertain whether it would fall under the category of mining service. It is seen from the Show Cause Notice that it examines in detail the activities undertaken contract wise. However, the impugned order does not examine the activities undertaken contract-wise to ascertain the exact nature of service provided in each contract - It can be seen that the language in the contract for the nature of service being provided is quite different in each contract, and therefore, all the contracts cannot be dealt summarily in identical manner - the said demand is set aside and the issue remanded back to Commissioner to decided the matter after examining each contract. Demand under associated commission received from various clients - HELD THAT:- The appellant have claimed that the services are not covered under Business Auxiliary Service as there is no sale or marketing of goods involves in their activities. The said argument has been rejected by Commissioner on the ground that the Business Auxiliary Service not only covered service in relation to marketing or sale of goods but also includes their services including supervision of services on behalf of the client. It is seen that the impugned order does not elaborate as to how the activity done by the appellant amount to providing service on behalf of the client. From the description of services given by Shri Deepak Joshi, Director of the appellant, it is apparent that the services were not given on behalf of the ONGC but given to ONGC. In these circumstances, there is no merit in the argument of the Commissioner in the impugned order - there are no merit in the demand raised under this head and the same is set aside. Service tax under the head of ‘Manpower Recruitment and Supply Service’ - HELD THAT:- The Show Cause Notice does not elaborate exactly how the personnel were deputed for the job. The appellant have asserted that the personnel were deployed for their own work and as per contract. Under these circumstances when the personnel were deployed by the appellant to undertake the jobs involved in the main contracts it cannot be termed as ‘Man Power Recruitment and Supply Service’, the demand on this count is set aside. Appeal allowed in part.
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