TMI Blog2016 (10) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... pe of the taxable entry under Finance Act, 1994 tax liability arises. The said service becomes part of final service rendered by main contractor is of no consequence to determine the tax liability of each and every service provider. If at all, the service tax paid by a sub-contractor which becomes part of service further provided by the main contractor, the scheme of credit as envisaged by the Cenvat Credit Rules, 2004 will come into play subject to fulfillment of conditions therein. It is nobody s case that the sub-contractors per-se are not liable to service tax even if they rendered taxable service. Extended period of limitation - availability or otherwise of Cenvat credit to the recipient of service by itself cannot decide the bonafi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4-2005 and 2005-2006. Accordingly, proceedings were initiated against the appellant to demand and recovery service tax of ₹ 56,72,903/- alongwith proposal to impose penalties under various provisions of Finance Act, 1994. On completion of the adjudication proceedings the impugned order was passed. The Original Authority confirmed the service tax demand and also imposed equal amount of penalty under Section 78 alongwith the penalty of ₹ 5,000/- under Section 77 of the Act. 2. The appellant contested the impugned order mainly on the ground that the activities undertaken by them cannot be covered under taxable service of survey and exploration of minerals as they have only undertaken sub-contract work for M/s Shiv-Vani Oil G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per the scope of work under the impugned contract, the appellant had agreed to provide shot hole of specified depth and quantities by using the mechanics drilling rigs provided by the main contractor and under the provisions of the said main contractor. The specification of work is elaborated in the contract and they are not in dispute. The appellants main plea is that they are not involved in any activity of survey and exploration of minerals. The term survey and exploration of minerals cannot given such a vide meaning to cover all types of activities. In this connection, we noticed that the service tax liability on similar type of work carried out by M/s Shiv-Vani Oil Gas Exploration Services Ltd. was subject matter of decision by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod in view of the fact that there is no intention to evade payment of duty on the part of appellant. The appellant sought support based on the concept of Revenue neutrality to contend against demand for extended period. We note that availability or otherwise of Cenvat credit to the recipient of service by itself cannot decide the bonafideness of the appellant. We find that the Original Authority relied on the decision of Hon ble Supreme Court in CCE vs. Mahindra Mahindra 2005 (179) E.L.T. 21 (S.C.), wherein Hon ble Supreme Court observed as below :- 4. There can be number of eventualities where extended period of limitation in terms of proviso to Section 11A may be available to the Department despite availability of Modvat credit to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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