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2017 (9) TMI 1381

Sub-contract - Classification of services - dredging service - work of drilling and blasting at Mithi River - whether the service of drilling and blasting is a dredging service in terms of Section 65(36a), and whether the appellant being sub-contractor is liable to pay service tax in the event that the main contractor RMJV is discharging the service tax on the composite service provided to MMRDA? - Held that: - the clearing of river bed by scooping or "dragging" is a service of dredging. In .....

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Supdt. (AR) for the respondent ORDER Per: Ramesh Nair The fact of the case is that the appellant is a sub-contractor carrying out the job of drilling and blasting at Mithi River. This is part of the overall contract awarded by Mumbai Metropolitan Regional Development Authority (MMRDA) to Reliance Michigan JV (RMJV) for widening and desilting of Mithi River. RMJV was given the work of drilling and blasting at Mithi River. The demand of service tax on the activity of the appellant i.e. drilling a .....

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ecide stand alone service provided by the appellant. He refers to the definition of dredging service under clause 36A of Section 65. He further submits that it is evident from the confirmation letter dated 30.09.2013 provided by RMJV that the appellant has provided only service of drilling and blasting, the remaining service of excavation and removing silt was provided by some other sub-contractor M/s. S.K. Construction. In this fact the appellant's service of drilling and blasting does not .....

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.2013 has given a finding that the activity undertaken by the appellant was in public domain and it is a contract awarded by the Govt. of Maharashtra and, therefore, nobody can suppress the facts from public authorities. The charge against the appellant can at best be described as mis-interpretation of law. But mis-interpretation is not mis-statement or suppression of facts. He submits that as per the above finding in the present case also demand is clearly time barred. He further submits that a .....

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r is liable to pay service tax in the event that the main contractor RMJV is discharging the service tax on the composite service provided to MMRDA. The service of dredging is defined under Section 65(36a), which reads as under:- dredging includes removal of material including silt, sediments, rocks, sand, refuse, debris, plant or animal matter in any excavating, cleaning, deepening, widening or lengthening, either permanently or temporarily, of any river, port, harbour, backwater or estuary. 7. .....

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it can be seen that the meaning is akin to the activity which is provided in the inclusion clause of the dredging as per Section 65(36a), therefore by taking both the definition of "dredging", it is clear that the clearing of river bed by scooping or "dragging" is a service of dredging. In the present case, the activity is admittedly not similar to scooping or "dragging" of silt, mud etc. but it is limited to drilling and blasting. The subsequent service i.e. remov .....

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