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TMI Blog2015 (11) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... services at drill sites. The objective as per Clause 2 of the agreement is to restore waste pits and for this purpose the service providers have to undertake skimming of oily waste, collection, redistribution and transportation of oily and non oily drilling waste and thereafter restoration and back filling of the pits with locally available soil. It can be seen from the objective itself that the main objective is to clean the pits by removing oily and non oily waste completely and thereafter put in fresh soil (back filling). The main activity is not Site Formation since the drilling site is already existing and what the appellant to undertake is to remove the waste from the existing drilling site and clean up all the wastage and bring it b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... waste from pits, back filling of pits, transportation of waste, skimming, collecting, scrapping etc at Rajasthan as per the work order issued by M/s. Cairn Energy India Pvt. Ltd. It was submitted by the learned counsel that the work undertaken by the appellant falls into the category of other works/site formation/repairs. He submits that they have undertaken the work under Works Contract system. It was submitted that appellants wanted to opt to pay the tax under Works Contract (Composition Scheme for Payment of Service Tax) Rules 2007 and pay tax as per the scheme. It was also submitted that appellant had not availed any cenvat credit of duties paid on inputs/input services. It was also submitted that appellants were paid by M/s. Cairn Ener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd what they are doing physically is to clean the pits and bring them into a condition in which they are usable again. Therefore what the appellant is undertaking the activity of cleaning the pits of waste, oil etc and therefore the activity is clearly cleaning only. 6. Before we proceed further it would be appropriate to take note of the definition of Cleaning Service as per 65(105)(zzzd) and Section 65(105)(24b). Cleaning Activity means cleaning, including specialized cleaning services such as Disinfecting, Exterminating or Sterilizing of objects or premises, of (i) commercial or industrial buildings and premises thereof; or (ii) factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he oil content in the remaining liquid. Upon approval from the testing agency, the de-oiled liquid shall be pumped to the water pit (already at sites) and this may be used for consolidation/compaction of the soil which is required during pit falling or may be sprayed on the hardened surface of the well site which will be dry in summer. Examine the dewatered waste surface of pit. If the surface appears to be oil contaminated, scrap off the oil contaminated material. Since oily wastes are to be disposed off-site, contractor has to ensure that only the amount necessary to be scrapped is removed. 8. The learned counsel was specifically asked whether he is in disagreement with the activity undertaken by the appellant as mentioned herei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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