The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that an extended period can’t be invoked when the department itself was confused about classification of activities under various services.
Shri Amal Dave appeared for the Appellant and Shri. Tara Prakash appeared for the Respondent.
Messrs Darcy Reservoir Consultancy Services P Ltd, the appellant was 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 about all exploration.
As per the department, the activities were partly covered under the inspection and certification services. Accordingly, an SCN dated 17.10.2008, invoking an extended period was issued to the appellants, who of their own had taken registration under Technical Testing and Analysis Services with effect from 12.01.2006. The demand by the department was confirmed as per Show Cause under Test Inspection and Certification Services on 20.07.2009 and aggrieved by the order, the present appeal has been filed by the appellant.
In CST, Mumbai V/s. Fugro Geonics P. Ltd. was held that to support activities like providing exploration reports based on survey and retail expression of a mineral deposit is the service like “Survey And Exploration Of Minerals Service” and is not “Scientific or Technical Consultancy Service”
The Respondent contended that activities of extracting minerals can cover extracting metallic or non-metallic minerals and not oil and that the party did not pay Service Tax. He also pointed out that the party has chosen to pay under “Technical Testing and Analysis Service” could not go around and now seek to discharge a duty under “Survey and Exploration of Minerals Service”. He also justified the invocation of an extended period based on the conduct of the party.
A Coram comprising of Mr Raju, Member (Technical) and Mr Somesh Arora, Member (Judicial) observed that the department itself issued Show Cause Notices for the same type of services under various service classifications.
The Tribunal held that the extended period with intent to evade cannot be since there is confusion in the mind of the Department itself. The petition allowed the appeal both on merits as well as limitations.
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