2013 (10) TMI 1441 - AT - Service Tax

Summary

Issues involved: Application for waiver of Service Tax, classification of activity under Dredging services u/s 65(36a) of the Finance Act.

Summary:
The applicants sought waiver of Service Tax, interest, and penalty amounting to Rs. 12,75,866, contending that they only performed drilling and blasting activities as directed by the main contractor, not dredging. The Revenue argued that drilling and blasting fall under Dredging Service as per the Finance Act. The applicants failed to produce a work order explaining the scope of work, relying only on a letter from the contractor. The Tribunal noted that dredging involves material removal, which drilling and blasting achieve, directing the applicants to deposit Rs. 4 lakhs within eighty weeks for partial waiver of dues, with recovery stayed during the appeal. Compliance was required by a specified date.

In conclusion, the Tribunal found that the drilling and blasting activities undertaken by the applicants essentially resulted in material removal, aligning with the definition of dredging service under the Finance Act. Despite the lack of a detailed work order, the applicants were directed to make a partial deposit for waiver of the remaining dues, with recovery stayed pending the appeal.