Obligations and responsibilities discharged by co-venturer is not subjected to service tax

BG Exploration & Production India Ltd. Vs Commissioner of Service Tax (CESTAT Mumbai) Held that as a party to the joint-venture, obligations and responsibilities discharged by co-venturer cannot be brought under service tax levy. Accordingly, demand of service tax set aside. Facts- The appellants are engaged in the business of mining of mineral oil and natural gas and for this purpose have executed ‘Production Sharing Contract (PSC)’ for extraction of mineral oil and natural gas at the Panna & Mukta oilfields and the Tapti oilfield. In undertaking such activities under the PSC, the...