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TMI Blog2015 (11) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. for cleaning and restoration of the drilled areas and pits used for oil exploration, entertaining a view that appellant should have paid service tax treating the service provided as Cleaning Service proceedings were initiated for demanding service tax on the said service. As a result of the proceedings service tax of Rs. 23,37,761/- (Rupees Twenty Three Lakhs Thirty Seven Thousand Seven Hundred and Sixty One only) has been demanded with interest for the period from 01.04.2010 to 31.03.2011 and penalties under Section 77 and 78 of Finance Act 1994 have been imposed. 2. Heard both the sides. 3. It was submitted by the learned counsel for the appellant that they had provided following services to M/s. Cairn Energy India Pvt. Ltd. n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f pre-deposit and pre-deposit of balance dues may be waived and stay granted. 4. In addition to the above submission he also submitted that the work undertaken by them cannot be considered as Cleaning Service but can at best be considered as Cargo Handling Service or Site Formation Service and since the show-cause notice proposes demand only on cleaning service, the appellants need not pay any tax and demand itself is not sustainable. 5. We have considered the submissions made by the learned counsel. Heard the learned AR also who draws our attention to the nature of the work undertaken by the appellant according to the agreement and submits that the appellant was engaged in restoration of waste pits in the oil extraction area of M/s. Cair ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iate mechanical system devised to remove/push the oily scum/oily liquid to one edge of the pit. The mechanical system shall be adopted considering all the safety factors to execute this work. Collect all the floating oil into barrels (provided by CEIL on accountable basis) with the help of suitable collecting device like floating hose with hand pump or by similar device which should be acceptable to CEIL. Contractor shall minimize the water intake while collecting the floating oil to the barrels, if required water may be separated from the barrels by means of mechanical means. The process to be repeated till all the oil layer has been removed. The de-oiled liquid will be examined by CEIL/CEIL engaged agency for checking the oil content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r this purpose the service providers have to undertake skimming of oily waste, collection, redistribution and transportation of oily and non oily drilling waste and thereafter restoration and back filling of the pits with locally available soil. It can be seen from the objective itself that the main objective is to clean the pits by removing oily and non oily waste completely and thereafter put in fresh soil (back filling). The main activity is not Site Formation since the drilling site is already existing and what the appellant to undertake is to remove the waste from the existing drilling site and clean up all the wastage and bring it back to the original condition. The Cleaning Service definitely covers the activity. Therefore on merit w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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