TaxTMI 
TaxTMI 
2009 (3) TMI 292
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.... of the Finance Act, 1994. 2. Heard both the sides in the matter. 3. The appellant had undertaken laying of long distance pipelines for drinking water project and contracted with M/s. Gujarat Water Supply and Sewerage Board (GWSSB). The Revenue proceeded against the appellant on the ground that they have undertaken the services of 'commercial or industrial construction' for which no service tax was being paid by them. 4. The learned Jt. CDR pointed out that the pipelines had been laid by the appellants for carrying water purchased by GWSSB and the water was sold at the subsidized rate to the local bodies and at higher rates to the industries. Therefore the appellants were engaged in the commercial activities and in terms of the definitio....
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.... for water supply and Sewerage services; (g) to review annually the technical financial, economic and other aspects of water supply and sewerage system of every scheme of the Board of the local bodies which have entered into an agreement with the Board; (h) to establish and maintain a facility to review and apprise the technical, financial, economic and other pertinent aspects of every water supply and sewerage scheme in the State; (i) to operate, run and maintain any water works and sewerage system, if and when directed by the State Government, on such terms and conditions and for such period as may be specified by the State Government; (j) to assess the requirements for manpower and training in relation to water supply and sewerage se....
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....ground sumps, overhead tanks, distribution networks and village level sumps, etc. The cost of supplying drinking water thus incorporates raw water cost, filtration cost, pumping cost and all service charges related to this activity. The actual service cost has been, even if capital cost of infrastructure is not accounted, is high enough that the beneficiary people may not afford. However, with a view to create a sense of responsibility and awareness towards the services amongst the people for its economic use, the State Government has imposed a nominal charge to the beneficiary panchayat. However, it is not sufficient enough to recover even the operating cost. Thus the Gujarat Water Supply & Sewerage Board cannot be treated as a commercial....