TaxTMI 
TaxTMI 
2009 (5) TMI 66
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.... 1994 as Service tax and interest thereon under Section 75 of the Finance Act, 1994 along with equivalent amount of penalty under Section 78 and penalties under Sections 76 and 77 of the Finance Act, 1994. 2. Brief facts of the case are that the applicant is a public sector undertaking and 100% shares are held by the President of India. The Govt., of India, Ministry of Mines provides grant-in-aid for exploration work of various minerals to the applicant. The exploration work carried out by the applicant is termed as promotional work. The applicant is also registered with Service Tax Department under the category of "Scientific and Technical Consultancy Services". The applicant is also doing exploration work, as promotional work for the Min....
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....from 1-4-2002 in view of a letter F. No. 37/7/95-MI, dated 31-10-2002 of the Director (Technical), GOI, Ministry of Coal and Mines, Department of Mines, to the effect that Service tax was not applicable for the work undertaken on behalf of the Department of Mines. He further stated that the promotional grant to the tune of Rs. 1,60,74,560/- sanctioned and conveyed through the said letter also clearly excluded Service tax. The Commissioner issued a show cause notice as to why:- (a) service tax amounting to Rs. 4,36,88,734/- should not be demanded and recovered from them under Section 73 read with Sections 66 and 68 of the Finance Act, 1994, (b) interest at the appropriate rate should not be charged and recovered under Section 75 of the Fin....
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....l Projects which has been constituted vide letter No. 31/16/96-MI, dated 19-9-1997 under Chairmanship of Addl. Secretary of Ministry of Mines. The basic purpose of promotional exploration is to create on the shelf report for various minerals which may be exploited by Government/Private investors at a later date. These reports remain on the shelf of the applicant and are not given to any one except when some one approaches the applicant to purchase copy of report. Thus, in no case there is service to Government. The applicant further contended that where public funded Research Institute receive grant or aid for conducting Research/Project work, no service is rendered to a client on payment basis, as such, no Service tax would be payable. Thi....