2022 (3) TMI 1165

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....ding the services of "Drilling of wells & Tubewells" and received Rs. 2,90,31,649/- against providing of the aforesaid services, and not paid service tax amounting to Rs. 39,15,178/- (inclusive of Cesses) during the period from October-2013 to March, 2017. The appellant were digging wells and bore wells for the use of farmers, which in turn was utilised by them for their agriculture operations, such as irrigation of crop and other allied activities. A show cause notice dated 22.04.2019 was issued to the appellant, wherein it has been alleged that they have suppressed the relevant facts and contravened the provisions of Section 68, 69 and 70 of the Finance Act, 1994 read with Rule 6, 4 and 7 of the Service Tax Rules, 1994, with intent to eva....

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....e course of argument before the Commissioner (Appeals), the assessee had urged that cultivation includes activities like planting, irrigation, spraying of pesticides and similar operations. They had also relied upon the ruling in the case of CIT Vs. Raja Binoy Kumar Sahas Roy - 1957 32 ITR 466, wherein the Court had held that term "agriculture" refers to cultivation of lands in the wider sense as comprising within its scope, the basic as well as subsequent operations such as weeding, digging the soil around the growth, removal of undesirable under-growth, tending, pruning, cutting, harvesting and rendering the produce fit for the market. 4. Ld. Commissioner (Appeals) was pleased to observe that the appellant-asssessee have not sufficient....

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.... Panchayat, wherein the Sarpanch included the list of the names of the farmers/service receivers, who have received the services of digging of borewells and well, and the amount paid by each individual farmers. I find that such evidences led before the Court Below have not been found to be untrue. Thus, I hold that the Court Below have rejected the evidences arbitrarily and against the Scheme of the Finance Act read with the Rules thereunder. 10. The appellant have also produced copy of the clarificatory letter dated 4.3.2014 being F.No.354/35/2014-TRU issued by the then Finance Minister in reference to the representation, received from South Zone Agriculture Association with assessment with regard to the taxability on the activities of ....