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TMI Blog2021 (8) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax era, etc. Without going into the merits of the main argument of the appellant regarding the activity undertaken is by way of agricultural operations relating to production of any agricultural produce, etc., prima facie, in the scheme of things of GST, no two classifications can be adopted for a single activity based on end use or where it is rendered, etc. The appellant himself has already classified his supply of services of borewell drilling under 9954 for the purpose of paying the tax; it defies logic as well as law that the same activity if done on agricultural land will be classifiable under a different heading 9986 - since the same equipment is used for the drilling activities, whether on agricultural lands or for industries, etc., it would not be possible for the tax administration to identify whether the driller is exclusively undertaking agricultural drilling only thereby leading to evasion of tax only. There are no reason to interfere with the order of the Advance Ruling Authority in this matter - appeal disposed off. - TN/AAAR/14/2021(AR), A.R. Appeal No.03/2021/AAAR - - - Dated:- 30-6-2021 - THIRU. G.V. KRISHNA RAO, AND THIRU. M.A. SIDDIQUE, MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods 86 Services Tax Act 2017 by Tvl. Vallalar Borewells (hereinafter referred to as Appellant ). The appellant is registered under GST vide GSTIN 33ABAFM0641E1ZY. The appeal is filed against the Order No. 40 /ARA /2020 dated 18.12.2020 passed by the TamilNadu State Authority for Advance ruling on the application for advance ruling filed by the appellant. 2. The Appellant has stated that they are engaged in the activity of drilling borewell service to agriculturist. Water is a prime source for the agriculture of crops. Likewise, compressors which are let out by them to agriculturists enable the motor to function and discharge water as required for cultivation and allied agricultural uses. They also obtain a confirmation letter from the agriculturist that the borewell drilled in their land is used only for the agricultural purpose. 3. The Appellant has sought Advance Ruling on the following questions: (i) Whether the following supply of service provided by the appellant are in relation to agricultural operations directly in connection with raising of agricultural produce: a. Drilling of Borewells for supply of water for agricultural operations like cultivation in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market; (d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) loading, unloading, packing, storage or warehousing of agricultural produce; (f) agricultural extension services; (g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce. NIL NIL 2. The Appellant submits that in the impugned order, it has been held that to be eligible for the exemption notification the Appellant activities should be classifiable under SAC 9986. The Explanatory Notes to the Scheme of Classification of Services is as follows: This service code includes 1. services to improve the propagation quality of the seed, including treatment of genetically modified seeds; removal of no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction services on inputs owned by others like operation of a crop production unit on a fee or contract basis. 8. Drilling of borewells ensures un-interrupted supply of water for cultivation of agricultural produce. 9. Furthermore it is settled law that where the assessee is entitled to benefits under two notifications or two heads the assessee can claim more benefit and it is the duty of the authorities to grant such benefits if the applicant is otherwise entitled to such benefit. In this regard the Appellant places reliance on the case of H.C.L. Limited vs. Collector of Customs, New Delhi reported in 2001 (130) ELT 405 (S.C.) and the case of Share Medical Care vs. Union of India reported in 2007 (209) ELT 321 (SC.). 10. Although here is a specific entry, classification ought to be done based on the actual usage. For instance, HDPE pipes are considered as part of Irrigation Equipment when used as a component of such an integrated equipment. COMPRESSOR 11. The compressor is an essential ingredient for pumping out the water and the same in relation to cultivation of agriculture therefore giving a narrow interpretation would vitiate the intention of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under the erstwhile taxation regime as well as under GST the said services are exempted and there is a clear indication of legislative intent in this regard. 6. The Appellant was granted personal hearing through Virtual Personal Hearing as required under law before this Appellate Authority on 22nd June 2021. The Authorized representatives of the Appellant Tvl. Muthu Venkatraman, Advocate of the appellant company appeared for hearing. They reiterated the written submissions and claimed that when there is a general and specific entry, without exclusion it is their right to choose the beneficial exemption. DISCUSSION 7.1 The delay in filing the appeal is condoned. We have carefully considered the various submissions made by the Appellant and the applicable statutory provisions and the case laws etc. 7.2 Essentially, the moot point is whether the bore well drilling activity undertaken by the appellant on agricultural lands is qualified for the entry no. 54 of notfn. No. 12/2017-CGST(R). It is noted that the appellant while undertaking the borewell drilling activity for industries etc., (other than on agricultural lands), it is classified under SAC 995434 leviable to ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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