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.
Appellate Authority for Advance Ruling —- Activities pertaining to Agriculture – The appellant sought Advance Ruling as to whether the supply of services provided by the applicant are in relation to agricultural operations directly in connection with raising of agricultural produce i.e Drilling of Borewells for supply of water for agricultural operations like cultivation including seeding, planting and ploughing ; Letting out of compressors for pumping of water from the borewells to the agricultural fields. If the answer to the above question is in the affirmative, whether the said services are covered by the entry Sl.No. 54 of Notification 12/2017 CT (Rate) dated 28.06.2017. The AAR held that Drilling of Borewells for supply of water in agricultural land is not ‘Support Service for agriculture classifiable under SAC 9986. Letting out of compressors for pumping of water from the borewells to the agricultural field is not Support Service for agriculture classifiable under SAC 9986. Therefore the exemption at Sl.No. 54 of Notification No.12/2017-C.T (Rate) is not applicable to the above activities. Being aggrieved the appellant filed present appeal. The authority did not find any infirmity in the reasoning of the Advance Ruling Authority.
Held that:- The Hon’ble Appellate Authority for Advance Ruling dismissed the appeal.
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.
Appellate Authority for Advance Ruling —- Activities pertaining to Agriculture – The appellant sought Advance Ruling as to whether the supply of services provided by the applicant are in relation to agricultural operations directly in connection with raising of agricultural produce i.e Drilling of Borewells for supply of water for agricultural operations like cultivation including seeding, planting and ploughing ; Letting out of compressors for pumping of water from the borewells to the agricultural fields. If the answer to the above question is in the affirmative, whether the said services are covered by the entry Sl.No. 54 of Notification 12/2017 CT (Rate) dated 28.06.2017. The AAR held that Drilling of Borewells for supply of water in agricultural land is not ‘Support Service for agriculture classifiable under SAC 9986. Letting out of compressors for pumping of water from the borewells to the agricultural field is not Support Service for agriculture classifiable under SAC 9986. Therefore the exemption at Sl.No. 54 of Notification No.12/2017-C.T (Rate) is not applicable to the above activities. Being aggrieved the appellant filed present appeal. The authority did not find any infirmity in the reasoning of the Advance Ruling Authority.
Held that:- The Hon’ble Appellate Authority for Advance Ruling dismissed the appeal.