9911796707
TMI Blog2016 (4) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-2006, it is found that the bulk handling plant was handed over by ONGC to respondent for operation and completing the contract to ONGC in rendering such activities, the respondent undertakes the maintenance or repair services which are for self and the services of management maintenance or repair are not attracted as the same is not provided to any client. From reading the scope of work as per agreement, principal job entrusted to respondent is in connection with smooth operation of bulk handling plant for obtaining desired results from the bulk handling plant. The agreement between ONGC and respondent does not indicate that respondent was required to provide any service relating to Management, Maintenance or Repair Services to ONGC, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 65(64) of the Finance Act, 1994 read with Section 65(105)(zzg) of the Finance Act, 1994. Show Cause Notice was issued demanding the service tax with interest and proposal for imposing penalties under various sections. The Adjudicating Authority after following due process of law dropped the proceedings so initiated. 4. Ld. departmental representative could draw our attention to the agreement entered by the respondent with ONGC and submits that scope of work is to operate and maintain Bulk Handling Plant of ONGC, disposal of waste material accumulated in and around the ONGC site, buying and lifting the empty bags prefixed schedule for preventive maintenance for Bulk Handling Plants. It is her submission that the agreement if read h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des and perused the records. 7. Undisputedly, the respondent has been awarded a contract for operation of the bulk handling plant of ONGC on a consideration for producing desired quantum of work. The said agreement also provided for regular, periodical inspection maintenance or repair and other activity to be done by the respondent. It is the case of the revenue that this activity of the respondent could fall under the category of maintenance or repair services prior to 01-05-2006 and subsequently under management maintenance or repair services . In our considered view, the lower authorities are in error to come to such a conclusion. The definition that falls under our consideration is reproduced below: Prior to 16-06-2005 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen from the above reproduced definition prior 01-05-2006 to attract service tax liability under maintenance or repair service, there has to be a contract for doing so and it should be given by manufacturer or any person authorized to do so. In the case in hand, the definition will not apply as the maintenance or repair service are not for management or repair service, but these are consumed by them for smooth functioning of bulk handling plant. 8. As regards the tax liability for the subsequent period from 01-05-2006, we find that the bulk handling plant was handed over by ONGC to respondent for operation and completing the contract to ONGC in rendering such activities, the respondent undertakes the maintenance or repair services whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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