2017 (8) TMI 599

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....utive Engineers. The Mechanical divisions are engaged in the manufacturing and erection of various types of gates for dams such as radical gates, vertical gates etc. The appellants are carrying out erection of gates with Govadari Marathwada Irrigation Development Corporation. The departments case is that the erection of gate is the taxable service of erection commission and installation which is liable to service tax. Accordingly, show-cause notices were issued proposing demand of service tax on the services which culminated into adjudication wherein the demand /interest and penalties were confirmed. Therefore the appellants are before us. 2. Shri Nitin Deshpande, Ld. Counsel on behalf of the appellants submits that the service was provi....

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....cted in various districts of Maharashtra, such as, Amravati, Akola, Washim, Yavatmal, Buldhana districts for the Vidharbha Irrigation Development Corporation, Tapi Valley Irrigation Development Corporation and Krishna Valley Development Corporation. The department was of the view that the appellant was liable to pay service tax on these activities under the category of Erection, Commissioning and Installation Service and accordingly confirmed demand of Rs. 2,41,68,577/- for the period 1-4-2006 to 31-3-2011 along with interest thereon and also imposed penalties under Sections 76, 77 and 78 of the Finance Act, 1994 under the aforesaid order. It is against this order, the appellant is before us. 3. The learned counsel for the appellant subm....

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....ndered to any person by a commissioning and installation agency in relation to erection, 'commissioning and installation'. The Chief Engineer, Water Resources Department of the Government of Maharashtra is not a commissioning and installation agency as they do not undertake these activities for anybody else except themselves. Further, the erection and commissioning or installation should be in relation to plant, machinery, equipment or structures. As clarified by C.B.E. & C. vide Circular No.790/09/2004, dated 17-9-2004 erection of structures referred to therein means civil works to installation/commissioning of a plant and machinery. Agricultural dam or sluice gates thereto cannot be considered as a plant and machinery or equipment....