TMI Blog2013 (10) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... Government – Held that:- There are five elements [i.e. A source rock, Migration, Trap, Seal or cap rock and Reservoir] which are required to be complied with to identify source of potential petroleum Hydrocarbon drill location. - In our opinion, this is what is covered by the definition of Survey and Exploration as far as oil/gas is concerned. - the wells drilled as per the GSPC's specification in the location identified after ensuring that the five elements of prospect are existing in the activity subsequent to survey and cannot be said to be a part of the service which is preliminary to mining or drilling activity - Follwoing decision of Atwood Oceanics Pacific Ltd. Versus Commissioner of Service tax, Ahmedabad [2012 (12) TMI 425 - CESTA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng on behalf of the Revenue made us go through the important contract clauses and argued that the contract entered between the appellant and the service recipient clearly convey that the same is not meant for supply of tangible goods and accordingly emphasised that demand has been correctly confirmed against the appellants and penalties have been rightly imposed. Ld. AR relied upon the judgment of this very bench dated 13.08.2012 in the case of Atwood Oceanics Pacific Ltd. Vs. Commissioner of Service Tax, Ahmedabad in Appeal No.ST/363, 344/2009 ST/CO/73/2010 and argued that facts of both the appeals are identical and accordingly appeals filed by the appellants are required to be rejected. 3. We have given our serious thoughts to the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsible for the operations of the Drilling Rig including, but not limited to, drilling, moving between Wells and positioning of the Drilling Rig and camp at Work Site, as required by GSPC. As well as Such operations at the Well Location as may be necessary or desirable for the safely of the Drilling Rig operation under This Contract in line with Good International Petroleum Industry Practice. h) Contractor shall furnish to GSPC daily or as required frequent report summarizing the current status of the Well, current depth of the hole and the formations penetrated. Contractor shall take all reasonable measures to follow the general drilling and casing program specified by GSPC. Supply of all necessary drilling bits, and other equipment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of mineral" means geological, geophysical or other prospecting, surface or sub-surface surveying or map making service, in relation to location or exploration of deposits of mineral, oil or gas; Section 65(105) "taxable service" means any service provided or to be provided- (zzzy) to any person, by any other person in relation to mining of mineral, oil or gas; (zzzzj) to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery equipment and appliances; In the case of M/s. Atwood Oceanics Pacific Ltd. (Supra) after deliberating for nearly 40 pages it was held by this bench i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
