2009 (12) TMI 406

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....ervice Tax - Rs. 1,92,90,936/- b. Interest. c. Penalty @ 2% u/s 76. d. Penalty - Rs. 1000/- u/s 77. e. Penalty - Rs. 1,93,00,000/- u/s 78. 2. The issue involved in this case is regarding the service tax liability on the appellant as regards the services rendered by them to the Govt. of Andhra Pradesh in form of turn key projects executed by them for the construction of reservoirs, canals, distributor system to feed various ayacut, land etc. The Revenue proceeded against the appellant on the ground that such an activity would fall under the category of works contract and will be covered under the definition of 'works contract' more specifically under sub-clause (e) "turnkey projects including engineering, procurement and const....

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....o the fact that they are providing the services to the Govt. of Andhra Pradesh for the irrigation system i.e. construction of reservoir canals etc. which is of non-commercial nature. 4. Ld. Jt. CDR on the other hand would submit that the Revenue is taxing this under the category of works contract as the projects executed by the appellant for the Govt. of Andhra Pradesh would directly fall under the category of turnkey projects. It is her submission that the title of the agreement entered by the appellant with Govt. of Andhra Pradesh clearly indicates that it is a turnkey project and hence it would be directly covered under the category of 'works contract'. It is her submission that the adjudicating authority has correctly come to the con....

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....llation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe works, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or (b) Construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or (c) Construction of a new residential complex or a part thereof; or (d) Completion and finishing services, repair alteration, renovatio....