Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 792 - AT - Service TaxClassification of services - management, maintenance and repair service/mining service or works contract services ? - period April, 2007 to May, 2007 - reverse charge mechanism - HELD THAT:- The activity in question with regard to exploration of oil by making horizontal drilling from existing/dead wells, there is no activity in the work order with regard to “management, maintenance and repair” services of the existing wells. It is held that the merits classification of the above services is “mining service”, which came under the Statute w.e.f. 01.06.2007 and in the case of ATWOOD OCEANICS PACIFIC LTD. VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD [2012 (12) TMI 425 - CESTAT, AHMEDABAD], this Tribunal held that the drilling, testing and completion of exploratory oil wells will be taxable only w.e.f. 01.06.2007 as services in relation to mining of mineral, oil or gas. Again, in the case of M/s Quippo Oil and Gas Infrastructure Limited Vs. Commissioner of Service Tax [020 (11) TMI 437 - CESTAT NEW DELHI], the activity of drilling of core holes and test wells was held to be taxable only w.e.f. 01.06.2007 as services in relation to mining of mineral, oil or gas - thus, the activities in question, do qualify as “mining services”, which came into taxable list w.e.f. 01.06.2007. Thus, for the prior period, no service tax is payable under “management, maintenance and repair” services - the impugned demand against the appellant under reverse charge mechanism, is set aside. Appeal allowed.
|