The Tamil Nadu Appellate Authority of Advance Ruling (AAAR) while upholding the AAR’s Ruling ruled that Letting out of Compressors for Pumping of Water from Borewells to Agricultural field is not ‘Support Service for Agriculture.
The appellant, M/s. Aravind Drillers provide drilling of borewell services mainly to agriculturists engaged in raising of agricultural crops. Water is a part and parcel of essential requirements in cultivation and raising of agricultural 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.
The appellant has sought the advance ruling whether the following supply of services provided by the applicant are in relation to agricultural operations directly in connection with raising of agricultural produce namely, drilling of Borewells for supply of water for agricultural operations like cultivation including seeding, planting and ploughing and letting out of compressors for pumping of water from the borewells to the agricultural fields.
The AAR ruled that drilling of Borewells for supply of water in agricultural land is not ‘Support Service for agriculture classifiable under ‘SAC 9986’.
The two members consisting of M.A.Siddique and G.V.Krishna Rao said “we do not find any reason to interfere with the order of the Advance Ruling Authority in this matter.”
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