2018 (4) TMI 671

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....rigation Development Corporation for providing and laying of M.S Pipe line of 2500 mm dia in two rays for Rising main of Paghora Lift Irrigation Scheme under Gosikhurd Project. The revenue entertained a view that the activity of the Appellant is of "Erection, commissioning and installation" and is liable for service tax. They were issued show cause notice for recovery of Service Tax which was confirmed by the adjudicating authority. The Appellant filed appeal before Commissioner (Appeals) who after appreciating the facts of the case held that the service is covered by the definition of "Construction of Pipeline or Conduit" mentioned under clause (b) of sub- section (25b) of Section 65 of the Finance Act, 1944 and not under the category of "....

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....s constructed by Govt. or under Govt. projects not liable to Service tax under Commercial or Industrial Construction service (2) Works contract service - Dams, irrigation projects, buildings or infrastructure construction under turnkey/EPC contract by Government not covered Circular No. 116/10/2009-S.T., dated 15-9-2009 F.No. 137/40/2009-CX. 4 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Leviability of Service tax on construction of canals by Government agencies - Regarding On a reference being received by the Board, two following issues were examined for a clear understanding of facts. The first is regarding leviability of service tax on construc....

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....rcial activity, the canal system built by the Government will not be chargeable to service tax. However, if the canal system is built by private agencies and is developed as a revenue generating measure, then such construction should be charged to service tax. 3. The second issue is about Government taking up construction activity of dams, irrigation projects, buildings or infrastructure construction etc. through turnkey or EPC (Engineering Procurement & Construction) mode. The said service is covered under Section 65(105)(zzzza) of Finance Act, 1994. The said section itself excludes works contract in respect of dams, tunnels, canals of irrigation projects, road, airports, railways, transport terminals & bridges executed through such tur....