2015 (7) TMI 1194 - AT - Service Tax

CESTAT Bangalore: Orders Set Aside, Matter Remanded for Fresh Decision. Stay Petitions Disposed.

The Appellate Tribunal CESTAT Bangalore set aside the impugned orders and remanded the matter to the original adjudicating authority for a fresh decision ... Works contract - Taxability of turn-key projects related to irrigation, dams etc. - Held that: - the issue stands decided by the Larger Bench decision of the Tribunal in the case of M/s. Lanco Infratech Ltd. And Others Versus Versus CC, CE & ST, Hyderabad [2015 (5) TMI 37 - CESTAT BANGALORE (LB)], where it was held that Construction of canals/ pipelines/ conduits to support irrigation, water supply or for sewerage disposal, when provided to Government/ Government undertakings would be for non-commercial, non-industrial purposes, even when executed under turnkey/ EPC contractual mode and would fall within the ambit of clause (b), Explanation (ii) of Section 65(105)(zzzza); and would consequently not be exigible to service tax, in view of the exclusion enacted in clause (b) - matter remanded to the original adjudicating authority for de novo adjudication - appeal allowed by way of remand. The Appellate Tribunal CESTAT Bangalore decided to set aside the impugned orders and remand the matter to the original adjudicating authority for fresh decision in the light of the law declared by the Larger Bench. Stay petitions and appeals were disposed of accordingly.