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2023 (3) TMI 639 - AT - Service TaxClassification of services - Technical Testing and Analysis Service or Survey and Exploration of Minerals Service? - providing services relating to Well Testing, Well Activation Works, Slick Line Services, Inspection and Monitoring of Well Testing Services, Inspection and Monitoring of Well Testing Services, Acquisition of Reservoir Data in relation to all exploration - Extended period of limitation - HELD THAT - Reliance upon the decisions in the matter of M/S MINERAL EXPLORATION CORPORATION LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, NAGPUR 2015 (1) TMI 388 - CESTAT MUMBAI as well as on COMMISSIONER OF SERVICE TAX, MUMBAI VERSUS FUGRO GEONICS PVT. LTD. 2014 (3) TMI 266 - CESTAT MUMBAI to support that activities like providing exploration report based on survey and retail expression of mineral deposit is the service in the nature of Survey And Exploration Of Minerals Service and is not Scientific or Technical Consultancy Service Classification being a legal issue, the appellants can contest the same at any time specially when legal position brings greater clarity later on. It is further found that the decisions relied upon by the appellants are inconsonance with board circular and largely covered the activities of the appellant s under Survey and Exploration of Minerals Service . In any case, as the cited case laws shows, department itself issued Show Cause Notices for same type of services under various different service classification. Under, the circumstances the extended period with intent to evade cannot sustain. Accordingly, there being confusion in the mind of Department itself and position having become clear through case laws in years 2014 or around, the extended period of demand cannot be invoked. The appeal allowed both on merits as well as limitation.
Issues: Classification of services under Survey and Exploration of Minerals Service vs. Technical Testing and Analysis Services, Invocation of extended period for demand
Classification of services under Survey and Exploration of Minerals Service vs. Technical Testing and Analysis Services: The case involved a dispute regarding the classification of services provided by the appellant during the relevant period. The appellant argued that their activities fell under "Survey And Exploration Of Minerals Service" based on previous case laws and a Board Circular. The appellant cited relevant judgments to support their classification, emphasizing that the department had previously issued show cause notices under different service classifications for similar services. The Tribunal noted that the appellant had initially registered under Technical Testing and Analysis Services but later claimed classification under Survey and Exploration of Minerals Service. After reviewing the submissions and case laws, the Tribunal agreed with the appellant's classification, stating that the confusion within the department and the clarity provided by recent case laws supported the appellant's position. The Tribunal concluded that the activities of the appellant were indeed covered under Survey and Exploration of Minerals Service, and the extended period for demand could not be sustained due to the evolving legal clarity. Invocation of extended period for demand: The department had invoked the extended period for demand, alleging that the appellant had evaded payment by choosing to pay under Technical Testing and Analysis Service instead of Survey and Exploration of Minerals Service. The Authorized Representative justified the invocation of the extended period based on the party's conduct. However, the Tribunal found that the appellant's activities were correctly classified under Survey and Exploration of Minerals Service. Therefore, the Tribunal held that the extended period for demand could not be upheld, especially considering the confusion within the department regarding the classification of services and the subsequent legal clarity provided by recent case laws. Consequently, the Tribunal allowed the appeal both on merits and limitation, ruling in favor of the appellant. In conclusion, the judgment by the Appellate Tribunal CESTAT AHMEDABAD resolved the issues of classification of services under Survey and Exploration of Minerals Service vs. Technical Testing and Analysis Services and the invocation of the extended period for demand in favor of the appellant. The Tribunal upheld the appellant's classification under Survey and Exploration of Minerals Service, highlighting the evolving legal clarity and the confusion within the department as supporting factors for their decision.
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