2021 (5) TMI 34

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....echarging oil wells of ONGC as per the requirements and specifications of ONGC. Carrying out such works includes drilling, work over rig and allied services. For such purpose, the petitioner possesses its own equipments, tools, has high-skilled and semi-skilled manpower including engineers. As and when the contract is awarded by the ONGC the petitioner deploys its machinery and manpower for the specific work assigned by ONGC. At the time of completion of the work, the petitioner company removes all its equipments and tools and also withdraws the manpower deployed for the work. The petitioner was awarded a contract by ONGC under a work order dated 28.07.2016 for carrying out one such oil servicing work for and on behalf of ONGC. This contrac....

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....ontracts we are of the view that the contracts are mainly for hiring of services. There may be a very small element of transfer of right to use goods but according to us the predominant portion of the contract relates to hiring of services and not to transfer of right to use the goods. We are aware that the dominant nature test is not to be used in composite contracts falling within the ambit of Article 366(29A) but from the reading of the contract it is more than apparent that the intention of the parties was to treat the contract as a contract for hiring of services. Moreover, it is impossible to divide the contract into two separate portions. Every element of the digging directional wells and Mobile Drilling Rig service contains a major ....