TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal rules in favor of appellant on tax liability in tunnel construction case</h1> <h3>C.C.E. -Chandigarh-I Versus Bharat Hydel Projects Pvt Ltd (Vice-Versa)</h3> C.C.E. -Chandigarh-I Versus Bharat Hydel Projects Pvt Ltd (Vice-Versa) - TMI Issues:1. Classification of services for tax liability regarding construction of tunnels.2. Interpretation of Notification No. 17/2005-ST dated 07.06.2005 exempting construction in respect of tunnels from service tax.Analysis:1. The case involved an appeal regarding the tax liability on the construction of tunnels awarded to an appellant by M/s Patel Gammon JV. The Revenue issued a show cause notice demanding service tax on the work executed by the appellant under the category of 'site formation and clearance, excavation and earth moving and demolition services'. The adjudicating authority dropped part of the demand but confirmed the rest under 'work contract services'. Both parties appealed against this decision.2. The appellant argued that the work executed for Head Race Tunnel and Tail Race Tunnel should not be subject to service tax as they fall under 'works contract services' and are exempt under Notification No. 17/2005-ST dated 07.06.2005. The appellant contended that the construction of tunnels exempts them from paying service tax as per the notification. The Revenue, on the other hand, argued that the demand for service tax should be confirmed for the Tail Race Tunnel under 'site formation and clearances, excavation and earth moving and demolition services'.3. The Tribunal analyzed the nature of the work executed by the appellant in relation to the construction of tunnels. Referring to Notification No. 17/2005-ST dated 07.06.2005, which exempts construction in respect of tunnels from service tax, the Tribunal concluded that the appellant's activities fell within the scope of this exemption. The Tribunal found that the appellant had carried out site formation, clearances, excavation, earth moving, and demolition services related to tunnel construction, making them exempt from service tax as per the notification.4. Consequently, the Tribunal set aside the demand for service tax against the appellant, ruling in favor of the appellant. The appeal filed by the Revenue was dismissed, and the appeal filed by the appellant was allowed based on the interpretation of the exemption notification and the nature of the services provided by the appellant in the construction of tunnels.5. The judgment highlighted the importance of correctly classifying services for tax purposes and emphasized the significance of relevant notifications in determining tax liabilities in construction-related activities, specifically in the context of tunnel construction projects.
TaxTMI 