2016 (1) TMI 301

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.... the respondent/assessee. 3. The respondent/assessee is a manufacturer of GRP pipes. Upon perusal of the accounts of the respondent/assessee, the Department noticed that the assessee received an amount of Rs. 5,19,45,145/- towards labour charges for installation andcommissioning of GRP Pipes for various customers during the period from 01.07.2003 to 31.10.2004. Therefore, a show cause notice, dated 30.05.2005, was issued on the ground that they are liable to pay service tax on the value of the service rendered by them under the category of "Erection, Commissioning or Installation Services" during the period from 01.07.2003 to 31.10.2003, under the proviso to Section 73(1) of the Finance Act, 1994. The assessee gave a reply. 4. Thereaf....

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....of 9 years has passed from the date of the order-in-original. A period of five years has passed from the date of the order of the learned Judge, allowing the writ petition. Therefore, it is futile to set aside the order of the learned Judge and to dismiss the writ petition on the ground of availability of alternative remedy, at this distance of time. Hence, we reject the first contention. 8. On merits, the stand taken by the respondent/assessee before the Additional Commissioner was that they were engaged only in the business of laying down pipelines and that therefore the same would not come within the purview of the expression "plant, machinery or equipment" so as to attract the provisions of Section 65(29) of the Finance Act, 2003. In....

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....in relation to, - (i) erection, commissioning or installation of plant, machinery or equipment; or (ii) installation of -- (a) electrical and electronic devices, including wirings or fittings therefore; or (b) plumbing drain laying or other installations for transport of fluids; or (c) heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work; or (d) thermal insulation, sound insulation, fireproofing or water proofing; or (e) lift and escalator, fire escape staircases or travelators; or (f) such other similar services." 13. A careful look at the development that had taken placefrom 01.07.2003 would show (i) that the focus of....

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....AT held in M/s.Indian Hume Pipes Co. Ltd vs. Commissioner - {2008 (12) S.T.R. 363} that pipes or pipelines would not come under the category of "plant, machinery or equipment". This decision of the Tribunal in Indian Hume Pipes Co. ltd. was affirmed by a Division Bench of this Court, to which one of us (VRSJ) was a party, in the Commissioner of Central Excise v. Indian Hume Pipes Co. Ltd. - {2015-TIOL-2049}. Therefore, the learned Judge was right in holding that the services rendered by the respondent/assessee to its customers did not form part of taxable services as on 01.07.2003. 17. Mr.B.Vijay Karthikeyan, learned Standing Counsel for the Department, attempted to distinguish the decision in Indian Hume Pipes Co. Ltd . on the ground th....