TMI Blog2022 (3) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... fidavits from the service receivers. Further, services were supported by the certificates issued by Sarpanch of the Village Panchayat, wherein the Sarpanch included the list of the names of the farmers/service receivers, who have received the services of digging of borewells and well, and the amount paid by each individual farmers - such evidences led before the Court Below have not been found to be untrue. Thus, it is held that the Court Below have rejected the evidences arbitrarily and against the Scheme of the Finance Act read with the Rules thereunder. The agriculture/cultivation includes irrigation or watering of the plants, as due to lack of irrigation, it is very difficult to have any agriculture produce - the activities carried o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the notices under Rule 7 C of Service Tax Rules, 1994 read with Section 70 of the Finance Act, 1994 and under Section 77 (1)(a) 78 of the Finance Act, 1994. Considering the submissions of the respondent, the Adjudicating Authority vide order-in-original dropped the demand on the ground that the service of digging wells and bore-wells were directly provided to the farmers for their agriculture operations, which were exempted from Service Tax under Section 66D (d)(i) of the Finance Act, 1994. 3. Thereafter, being aggrieved, Revenue preferred appeal before the ld. Commissioner (Appeals) on the ground that the services of digging wells and bore wells are not covered under the definition of Agriculture Operations like cultivation, ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted by the payment receipts from these farmers, and certificates issued from their respective Gram Panchayat. 5. Thus, due to insufficiency of the documents, ld. Commissioner (Appeals) was pleased to reverse the order-in-original and allowed the appeal of the Revenue confirming the demand of tax along with penalty under Section 78, 77 (1)(a) as well as Section 70. 6. Being aggrieved , the appellant is before this Tribunal. 7. Ld. Counsel for the appellant/assessee urges that the ld. Commissioner has held that the activities of the digging of borewells in agriculture fields for the farmers is exempt, but the only thing is sufficiency of evidences. Ld. Counsel takes me to the various evidences, which were produced before the Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded from the tax liability since it is covered in the scope of the Negative List Entry under Section 66 D(d)(i) of the Finance Act, 1994. 11. In view of my findings and evidences on record and relying on the ruling of the Hon ble Supreme Court in the case of Raja Binoy Kumar Sahas Roy (supra), I hold that the agriculture/cultivation includes irrigation or watering of the plants, as due to lack of irrigation, it is very difficult to have any agriculture produce. Accordingly, I hold that the activities carried out by the appellant is covered in the Negative List, which are exempt from tax. Accordingly, the impugned order-in-appeal is set aside and the order-in-original is restored. The appellant is entitled to consequential benefits in acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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