2026-VIL-98-CESTAT-DEL-ST
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SERVICE TAX CESTAT Cases

Service Tax - Blasting service for preparation of agricultural land or digging of wells, agricultural activities or not, negative list - Appellant was engaged in providing 'blasting service' by using explosive materials for boring, digging tube well, bore well and wells - Service tax demand on the blasting services provided for the preparation of agricultural land or digging of wells, as these services are not covered under the negative list nor exempted under any notification. The appellant contended that the blasting service is not a separate activity but forms part of the main activity of digging bore wells/tube wells, and no separate payment was received for the blasting service, so the levy of service tax is unsustainable - Whether the blasting service provided for digging of wells for agricultural purposes is covered under the negative list of services under Section 66D(d)(i) of the Act or is exempt under Notification No.25/2012-ST – HELD - The blasting services provided for digging of wells for agricultural purposes are covered under the negative list of services under Section 66D(d)(i) of the Act, as these services are 'relating to agriculture or agricultural produce' and are 'directly related to the production of any agricultural produce' - Where a definition uses the word "includes", the word defined not only bears its ordinary, popular and natural meaning but also the extended statutory meaning. The term 'including' used in the provision indicates that the agricultural activities covered are not restricted to the ones specified, but the list is non-exhaustive. The activity of facilitating water for agriculture by means of blasting for the purpose of tube-wells, bore-wells for fields, are in fact services relating to agriculture by way of agricultural operations - Further, the appellant had contended that no separate payment was received for the blasting service, and in the absence of consideration, which is a fundamental requirement for the levy of service tax, the demand is unsustainable - The impugned order is set aside and the matter is remanded back to the Original Authority to consider the documents, which may be placed by the appellant. The appeal is allowed by way of remand
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