TMI Blog2015 (1) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... ery company which undertakes technical consultancy as many companies do will fall under this definition, which is obviously not correct. Therefore, we hold that the activity undertaken by the appellant is covered under the Survey and Exploration of Mineral services for the entire period. Whether any service has been provided by the appellant for consideration - Held that:- when the activity is undertaken by them on the basis of 100% grant received from the Government and the grant is totally expended on the expenses involved under various activities as reflected in the balance sheet, it cannot be said that any service has been provided. For any service, there has to be a service provider, a service receiver and consideration. In the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lients. On the second activity, Service Tax is paid by them. 2.1 As regards the first activity, these reports are kept by them and may be sold to private users later, on payment of fees on which Service Tax is also being paid. The demand of Service Tax has been confirmed only on the reports prepared by them on the basis of exploration work and the activity undertaken has been classified by Revenue under the Scientific and Technical Consultancy Services. 3. Heard both sides. 4. The contention of the appellant is that they carry out work in the national interest to know the location of mineral deposit so as to bridge the gap between the initial discovery and the detailed exploration of mineral deposits. On the basis of their work, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating authority, he emphasized that there is an element of service involved in the activity undertaken by the appellant for the Government. According to him, raising of bills by the appellant and reflecting the receipt of income thereof in the balance-sheet, indicates that there has been consideration for the services provided. He also draw attention to Department of Revenue's Circular F.No. B-11/1/2001-TRU dated 9.7.2001, where the following points were clarified in respect of consultancy provided by Department, PSU, Public funded Research Institution:- Point raised for clarification Clarification Many public funded research institutions receive grants or aids from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r technical consultancy means any advice, consultancy or scientific or technical assistance rendered in any manner, either directly or indirectly, by a scientist or a technocrat or any science or technology institution or organisation, [to any person], in one or more disciplines of science or technology. Survey and exploration 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. It is quite obvious that keeping in mind the activities undertaken by the appellant, the service is classifiable under the Survey and Exploration of Mineral Service. The question which arises is whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the Government is only the reimbursement of the actual expenses involved. Board's Circular (supra) also clarifies that if Scientific or Technical Consultancy Service is provided to the Government Department for which consultation fees are received, then Service Tax would be applicable. In the present case it has not been shown by the Revenue that any consultation fee has been received by the appellant. It is also not a matter of dispute that the reports prepared by the appellant on the basis of Grant-in-Aid received are kept with them. As and when the situation or opportunities arise, these reports may be sold to clients or customers on payment of charges and Service Tax is paid on such charges. Clearly there cannot be duplication ..... X X X X Extracts X X X X X X X X Extracts X X X X
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