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2020 (11) TMI 461 - AT - Service TaxClassification of services - Maintenance and Repair service or otherwise - Charter hire of workover rigs - Extended period of limitation - HELD THAT:- The scope of work has been stated in Annexure – III appearing on page No. 85 of the appeal book, which inter alia states that, “contractor shall be required to start work over, and if required, complete the development / exploratory wells for ONGC by deploying its mobile work over unit at such locations within the operating area as may be identified by ONGC, and to such depth as are designated by ONGC to exploit natural hydrocarbon in the form of oil & gas”. Thereafter, in subsequent paragraph, it has been stated that other specified jobs shall also be carried out during the said work over operations, which are not limited to what has been expressly stated therein. The learned Commissioner, in page No. 7 & 8 of the impugned order, after having noted that aforesaid scope of work, has hurriedly concluded that the work is nothing but maintenance and repair of workover oil wells. No basis whatsoever has been assigned. He completely lost sight that the workover job has been desired by ONGC to complete the development and exploratory wells by deploying the mobile workover units at locations identified by ONGC to exploit natural hydrocarbons. On perusal of the above scope of work, we are not inclined to accept the conclusion reached by the learned Commissioner to hold that the service rendered by the assessee is for repair or maintenance. We agree with the submissions made by the learned Advocate that no repair or maintenance service has been rendered by the assessee and whatever repair service has been undertaken is clearly incidental to the main service of hiring of workover rigs. The said service could not be taxed under the category of ‘Maintenance, Management and Repair service'. Extended Period of Limitation - HELD THAT:- The learned Commissioner has not assigned any positive evidence to show that Service Tax has been deliberately not paid by the assessee. The only finding that has been made by the learned Commissioner is that the assessee has not intimated the fact of rendering the said service, which in view of the department is taxable under ‘Maintenance, Management and Repair service’. On the basis of said findings, the extended period of limitation has been invoked, which in our view is also not proper and would not meet the test of law, more so in view of the fact that issue pertained to interpretation of taxability - the demand confirmed by invoking the extended period of limitation fails. The impugned demand of Service Tax and interest are set aside and the appeal filed by assessee is allowed.
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