TaxTMI 
TaxTMI 
2017 (2) TMI 64
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....iod i.e. 16.06.2005 to 31.03.2007 rendered services in laying down long distance pipelines for transfer of drinking water in the State of Gujarat pursuant to a contract awarded to them by M/s Gujarat Water Supply and Sewerage Board (GWSSB). Alleging that the said service is taxable under the category of 'Commercial or Industrial Construction Services' , a demand notice was issued to them on 22.08.2007 for recovery of service tax amounting to Rs. 80,45,420/- with a proposal for penalty under sections 76 and 78 of the Finance Act, 1994. On adjudication, the demand was confirmed alongwith penalty, hence the present appeal. 4. The Ld. Chartered Accountant Shri Rahul Patel for the appellant submits that the construction of pipelines and....
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....ses of Larsen & Toubro Ltd. and Dinesh Chandra Agarwal Infracon P. Ltd (supra) considering the fact of lying down long distance pipelines for transfer drinking water in the State of Gujarat for M/s GWSSB and analysing the provisions and case laws on the subject observed as follows:- "16. Whether GWSSB can be categorized as a industry or not, is not relevant at all. In fact, the learned SDR himself has submitted that the definition of the services does not talk about the status or the definition of the service receiver. Any service receiver irrespective of its status or definition or composition, if utilizing the pipeline for commerce or industry, will render the provider liable to Service Tax. Therefore, strictly speaking, by Revenue s ow....
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....es. Enactment passed by peoples of representatives of Gujarat treats the purpose of the Board as Water Supply and Sewerage; Member Secretary considers the definition of Board as non-commercial one and facilitating supply of water; Annual Report has no profit and loss account; auditors clearly observe that annual report complies with the accounting standards applicable to non-commercial, non-business entities and have raised no objection to the procedure adopted by the Board. The annual report would have been placed before Government of Gujarat. Under these circumstances, we fail to understand how we can consider GWSSB as a commercial organization or the purpose of pipeline laid for them by various contractors as one for commerce i.e. to say....