Dredging service scope and pre-deposit: drilling and blasting was not enough for total waiver without proof of exact work.

Drilling and blasting undertaken under alleged directions of a main contractor was examined against the statutory scope of dredging service, which includes removal of material such as silt, rocks, sand, debris and similar matter while excavating, cleaning, deepening, widening or lengthening a river, port, harbour, backwater or estuary. Because the applicants produced no work order to establish the exact nature of the activity and relied only on the assertion that they had carried out drilling and blasting, the Tribunal found that such activity could prima facie involve removal of material but did not justify a total waiver of pre-deposit. Partial pre-deposit was directed and recovery was stayed pending appeal.

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Issues: Whether drilling and blasting activity, claimed to have been undertaken under directions of the main contractor, was prima facie covered by the definition of dredging service for the purpose of waiver of pre-deposit.

Analysis: The demand was based on the definition of dredging service under section 65(36a) of the Finance Act, under which dredging includes removal of material such as silt, sediments, rocks, sand, refuse, debris, plant or animal matter in the course of excavating, cleaning, deepening, widening or lengthening of a river, port, harbour, backwater or estuary. The applicants did not produce any work order before the lower authority or in the appeal to establish the exact scope of work, and their only case was that they had carried out drilling and blasting. Since such activity results in removal of material, the Tribunal held that a prima facie case for total waiver was not made out.

Conclusion: The Tribunal declined total waiver and directed partial pre-deposit of Rs. 4 lakhs, while waiving deposit of the balance and staying recovery during the pendency of the appeal.

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