Drilling, testing & completion of exploratory oil wells taxable w.e.f. 01.06.2007

Oil and Natural Gas Corporation Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata) Introduction: The recent verdict by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Kolkata has brought clarity to the classification of services provided by Oil and Natural Gas Corporation (ONGC) related to drain hole drilling in oil wells. The tribunal’s decision, outlined in the full text of the CESTAT Kolkata order, challenges the imposition of service tax by categorizing these services as “mining services” rather than under the umbrella of “managemen...