TaxTMI 
TaxTMI 
2023 (8) TMI 792
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....llant being a Public Sector Undertaking, floated a tender in order to invite bids for hiring of services for drain hole drilling in the existing oils wells un Assam using Ultra Short Radius Drilling Technology. The work was awarded to M/s Well Flow Drilling Services having its Principal Office in Bahrain. Thereafter a contract dated 25.08.2006 was executed between the appellant and the contractor. 2.1 The aforesaid work is to plug existing dead wells and drill new wells for exploration of oil by making horizontal drilling from such existing/dead wells. The said process is known as Ultra Short Radius Horizontal Drilling. 2.2 The Revenue alleges that the appellant has executed works contract services. Thereafter, a show-cause notice dated 1....
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....lls. He, therefore, submits that the impugned proceedings are to be dropped against the appellant. 4. On the other hand, the ld.A.R. for the Revenue, supported the impugned order. 5. Heard both the parties and considered the submissions. 6. We have gone through the impugned order and the scope of the works executed by the contractor is as under : "1.0 INTRODUCTION ONGC has planned a project of drilling and re-completing 15 Ultra Short Radius Drain Holes (USRDH) from existing wells of Assam Asset, Nazira on Integrated Well Completion Basis. These 15 wells are spread over two different sandstone reservoir fields of Assam Asset, namely Lakwa - Lakhmani and Geleki. The drain holes are to be drilled from wells presently completed with 5&....
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....g drilling fluids. * *Well Completion with Gas Lift/AL. (as per schedule of responsibility Clause No. 14) ....................................................... 6.0 SPECIFIC DESCRIPTION OF THE CONTRACTOR'S SERVICES 6.1 WELL DESIGING AND PLANNING ................................................. * To provide the step by step plan for rig deployment, drilling, completion and testing of each well along with time schedule for each activity........................... 6.2 RIG AND EQUIPMENT * To deploy one suitable rig complete with all equipment, system, tools and accessories capable for drilling and completion of USRDH wells of depth up to 2800m from existing wells.......................................... 6.3 ULTRA S....
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....rporation and undertake tool face orientation with gyro curve and lateral drilling and surveying of 4½" / 3 7/8" hole using USRD technology as per planned well trajectory. Drain hole length shall be of the order of 150m.................................. 6.7 WELL COMPLETION SERVICES * To plan, design, execute and co-ordinate the various activities of completion and testing in consultation with Corporation.......................................... * Where ever required USRDH wells to be completed with either perforated tubing or premium sand screen of appropriate size (2 1/15" / 2 3/8") in the drain hole section and blind tubing in the shaly curved part of wells...................... 9.0 EQUIPMENT/MATERIAL AND SERVICES .....