2011 (4) TMI 1174

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.... Limited demanding Service Tax and penalties. The second relates to the Order passed by the same authority demanding Service Tax and penalties against M/s. National Projects Construction Corporation Ltd. 2. Briefly stated the facts of the case are as follows :- 2.1 M/s. National Thermal Power Corporation Ltd. (NTPC in short) have entered into three contracts with M/s. National Projects Construction Corporation Ltd., vide Work Order No.(1) 6159 dated 1-8-03; No.(2) 6359 dated 10-1-04; and No.(3) 589 dated 2-3-05. The Work Orders relate to - (i) construction of New Ash Pond in Area No. 2 of TTPS, NTPC Talcher Thermal; (ii) construction of New Ash Pond in Area No. 1 of TTPS, NTPC Talcher Thermal; and (iii) civil works of Ash Dy....

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.... is for the expansion of an Ash Pond which was constructed for storing ash generated by NTPC to avoid air, water and soil pollution and therefore, the same cannot come under the category of 'dam' as normally understood in terms of various meanings of the word - 'dam' - given in dictionaries. Accordingly, he confirmed the demand of Service Tax on M/s. National Projects Construction Corporation Ltd. 4. Learned Counsel for M/s. National Projects Construction Corporation Ltd. would also argue that they were under the bona fide belief that they were not liable to Service Tax in view of the clarification issued by the Superintendent of Customs, Central Excise & Service Tax, Waidhan Range to a party at Badarpur, New Delhi, vide his letter ....

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....endered in this case, that is, construction of ash pond and civil works for ash dyke for a thermal power plant would qualify under the category of Industrial Construction Service and therefore, would be liable to Service Tax under the category of Commercial or Industrial Construction Service. Such construction cannot be held to be construction of a 'dam' as normally understood. Thus the appellants have not made out a prima facie case for a full waiver of pre-deposit in this case. Learned Counsel for the principal contractor submitted that while demanding the Service Tax, the Commissioner has not excluded the value of the goods supplied and Service Tax is liable to be paid only on that portion of the value attributable to services rendered. ....