TaxTMI 
TaxTMI 
2014 (11) TMI 1023
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....ner has challenged the Circular No. 80/10/2004/S.T., dated 17-9-2004. 2. The petitioner is engaged in the business of exploration and production of oil and gas in India. The petitioner entered into the Production Sharing Contract (PSC) with the Government of India along with several other parties including ONGC. The petitioner would state that mining of minerals involve two steps (a) Survey and exploration and (b) Extraction and processing of minerals. It is stated that during the relevant period, the petitioner entered into contract for prospecting and surveying of minerals which fall within the meaning "Survey and Exploration of minerals" in terms of Section 65(104a) of the Finance Act, 1994. 3. The petitioners are said to hav....
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....tioner elaborately referred to the type of activity done by the petitioner and endeavoured to submit that the impugned circular is wholly without jurisdiction and the circular goes beyond the scope of the Act. 6. Learned Standing Counsel appearing for the respondent submitted that circular cannot be challenged and it only explains accepted industrial practice regarding Survey and Exploration of materials and it is well within the scope of Section 65(104a) read with 65(105)(zzv) of the Finance Act, 1994. It does not offend any of the provisions of the Act. He submitted that the impugned circular was issued to clarify the provisions pertaining to Service Tax regarding the Finance Bill, 2004 and the circular only explains the scope of su....
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.... reported in 2012 (278) E.L.T. 584 (S.C.) = 2012 (28) S.T.R. 193 (S.C.) considered the correctness of the order of a Division Bench of this Court in the case [2007 (217) E.L.T. 167 (Mad.)] and that of the Punjab and Haryana High Court in 2008 (229) E.L.T. 195 (P & H) wherein, the Circular No. 8/2006-Customs was quashed by the High Court stating that it is beyond the powers conferred on the Central Board of Excise and Customs under Section 151A of the Customs Act. The Hon'ble Supreme Court, while considering the question examined the binding nature of the circular and pointed out that the circular issued by the Department which are in the nature of guideline to the Authority and therefore, the contents of such circulars could also be conside....