TaxTMI 
TaxTMI 
2016 (12) TMI 485
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....Section 65(39a) of the Finance Act, 1994. Based upon such conclusion and information provided by the appellant, a show-cause notice was issued for demand of the Service Tax liability. Appellant contested that the show-cause notice on merits as well as limitation. The adjudicating authority after following due process of law came to a conclusion that their activities as indicated by the appellant for construction of the balance work, Nerala Lift irrigation scheme is covered under Erection Commissioning or Installation Services , dismissing the claim of the appellant that it would fall under Commercial and Industrial Construction Services eligible for exemption. 2. Learned Counsel would take us through the entire case and submits as under:- A. Vide the order impugned in the above appeal, the Respondent has confirmed the demand of service tax of Rs. 2,66,31,150.00 under the proviso to section 73(1) of the Finance Act, 1994 with interest under Section 75 of the Finance Act and imposed penalties under sections 77 and 78 of the Finance Act, 1994 and Rule 7(c) of the Service Tax Rules in view of his findings that the activity of construction of a project named as Construction ....
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....x which is intended for sale, wholly or partly, by a builder or any person authorized by the builder before, during or after construction (except in cases for which no sum is received from or on behalf of the prospective buyer by the builder or a person authorized by the builder before the grant of completion certificate by the authority competent to issue such certificate under any law for the time being in force) shall be deemed to be service provided by the builder to the buyer;" (emphasis supplied) D. It is admitted by the Respondent in his order impugned in the above appal that the contract between the Appellant and Vidharbha Irrigation Development Corporation is a composite contract and in view thereof the Respondent gave 67 per cent abatement from the gross amount received by the Appellant for calculating the service tax. E. In view of the aforesaid authoritative pronouncement of the Hon'ble Apex Court, taxable services of erection, commissioning and installation covers service contract simplicitor and not composite contracts. F. In view of the aforesaid, the demand of service tax under the erection, commissioning and installation services confirmed under t....
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.... The above order of the larger bench of this Hon'ble Tribunal has been quoted with approval by the Hon'ble Madras High Court in the case of Indian Hume Pipe (supra). K. Without prejudice and in any event and assuming that the services provided by the Appellant are taxable under the works contract services, which became taxable with effect from 1.7.2007, for which there is no demand in the show cause notice or in the impugned order, no service tax is payable by the Appellants. The relevant definition of works contract services reads thus: "(zzzza) to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams. Explanation : For the purposes of this sub-clause, works contract means a contract wherein, - (i) Transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and (ii) Such contract is for the purposes of carrying out, - (a) Erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or other....
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....sions made by both sides and perusal of records, we find that the work executed by the appellant by a contract entered with M/s Vidarbha Irrigation Development Corporation, Nagpur for providing and laying spiral welded/fabricated M.S. Pipe line for raising main and its allied works like construction of manifold, pumping machinery, switch yard and all cable work for electric supply (from M.S. E.B. point onwards) including all related civil, mechanical and electrical works as per design and drawing, commissioning, testing of the entire pipe line and pumping machinery including maintenance for two years after completion of the scheme. It can be noticed from the description of the work awarded to the appellant, it is a contract turnkey project which results in an erected structure with installation of pumping machinery, electrical switch yard and other related civil, mechanical and electrical structures, in our considered view would get covered under head Commercial and Industrial Construction Services . This specific issue was before the Larger Bench of the Tribunal in the case of Lanco Infratech Ltd. (supra), wherein the Larger Bench has settled that the law and held that irrigation ....