TMI Blog2014 (11) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... d the respondent, in turn, shall consider the facts of the petitioner’s case and also bear in mind the principles pointed out by the Supreme Court by examining the scope of the Service Tax Act under Section 65(104a) and Section 65(105)(zzv) of the Finance Act. Hence, the challenge to the impugned circular is to necessarily fail and no ground is made to interfere with the impugned circular dated 17-9-2004 - Writ petition dismissed - Decided against the assessee. - W.P. Nos. 5233-5234 of 2008 - - - Dated:- 13-11-2014 - T.S. Sivagnanam, J. Shri R. Karthikeyan, for the Petitioner. Shri V. Sundareswaran, Standing Counsel, for the Respondent. ORDER In both these writ petitions, M/s. Cairn Energy India (P) Ltd. is the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls with Survey and exploration submitted that the circular now includes activities such as seismic survey, collection/processing/ interpretation of data and drilling or testing in relation to survey and exploration etc., in relation to survey and exploration within the ambit of exploration survey, which, according to the petitioner is beyond the powers conferred by the statute and in particular Section 65(105)(zzv). Therefore, it is submitted that the impugned circular being beyond the scope of prospects covered in the definition of Survey and Exploration of Minerals is beyond the jurisdiction of the Act, consequently show cause notice dated 23-10-2007 proposing to levy service tax on drilling activities is also illegal since drilling activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and exploration of minerals is contrary to the accepted industrial practices and appears to be misleading. In this regard, reference has been made to the Book viz., Introductory Mining Engineering by Howard L. Hartman and as per the book, drilling activity is vital for mineral exploration. Further the learned counsel submitted that in terms of the definition under Section 65(104a) of the Finance Act, 1994, states that survey and exploration of mineral means geological, geophysical and 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 submitted that the said proviso has to be read along with Section 65(105)(zzv) of the Finance Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der various evidences made available to them. 9. By applying the said decision to the facts of the case, the only conclusion to be arrived at is by observing that the impugned circular cannot be considered as sole evidence and not the sole guiding factor for issuance of show cause notice. Further, it is stated in the counter affidavit that the circular is of not the basis to levy service tax but to clarify the position. Hence, the petitioner need not have any apprehension about the circular, however, shall give reply to the notice and the respondent, in turn, shall consider the facts of the petitioner s case and also bear in mind the principles pointed out by the Supreme Court by examining the scope of the Service Tax Act under Section 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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