TaxTMI 
TaxTMI 
2018 (6) TMI 932
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....the Tribunal. 2. On behalf of the appellant, ld. counsel Shri S. Durairaj submitted that the service tax demand was made on three types of services:- (a) Construction service for commercial concern during the period from April 2005 to December 2006 (b) Construction services provided to Common Effluent Treatment Plant (CETP) as sub-contracted to M/s. Enkem Engineers Pvt. Ltd. for the period April 2005 to September 2008. (c) Construction services provided to common effluent treatment plant directly for the period April 2005 to September 2008. 2.1 He submitted that in respect of services rendered to commercial concerns for the period from April 2005 to December, 2006, the appellant paid the service tax of Rs. 12,50,990/- along with interest even before issuance of show cause notice and therefore the demand as well as penalties on this count cannot sustain. 2.2 With regard to construction of effluent treatment plant as sub-contracted to M/s. Enkem Engineers Pvt. Ltd. and directly rendered by the appellant, it is submitted by ld. counsel that the said services fall under Works Contract Service and is taxable only with effect from 1.6.2007. The adjudicating authority has wrongly re....
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....tional, public or any useful institutions, objects or purpose or for any exhibition and to undertake rural development programms for the welfare or general public in any part of the country. He thus argued that the aim of the plant is to serve public cause and thus the construction is not primarily used for commerce or industry. 2.4 The ld. counsel relied upon the case of Green Environment Services Co-op Society Ltd. Vs. Union of India - 2009 (13) STR 250 (Guj.) to support his argument that the said services are activities in public interest and therefore cannot be considered as commercial construction. The decision in the case of Jyoti Buildtech (P) Ltd. Vs. Commissioner of Central Excise, Noida - 2017 (3) GSTL 116 (Tri. All.) was relied upon by the ld. counsel to argue the ground of limitation as well as also to support his alternate plea to set aside the penalties. He argued that the issue was wholly interpretational and thus the longer period of limitation is not invocable and the penalties may also be set aside. It is submitted by him that since the issue is interpretational, the demand for the normal period from 1.4.2008 to 30.8.2008 for Rs. 5,03,014/ would only survive. 3.....
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.... industrial construction"] means - (a) construction of a new building or a civil structure or a part thereof; or (b) construction of pipeline or conduit; or (c) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or (d) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is - (i) used, or to be used, primarily for; or (ii) occupied, or to be occupied, primarily with; or (iii) engaged, or to be engaged, primarily in, commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams" 5.2 One of the contention put forward by the ld. counsel is that the contracts are composite in nature involving both cost of materials supplied as well as charges for services rendered and there....
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....monies should be permitted to reopen till financial closure is achieved and monies deposited, the Committee further recommends that all CETPs deposit the entire project cost within a period of 2 weeks (after adjusting the money spent by them towards the works in progress). If the units do not so deposit, the Committee recommends that they be shut down. The Committee reiterates the fact that all CETPs ought to have commissioned their RO system by today, if not much earlier, if their earlier undertakings were taken into account. Apart from the condition on deposit of the entire project cost (minus the monies actually spent), the member units of all CETPs should be subject to a fine of at least 10 paise per litre of effluent as reflected in the consent) at least from 1-8-2006." (emphasis added) 21. The Monitoring Committee vide its memo dated 19-7-2006, submitted the report before the High Court. It also appears from the record that for the purpose of inspection of CETPs the High Court vide order dated 1-8-2005 constituted a Committee consisting of three lawyers, namely Mr T. Mohan, Mr S.Thangavel and Mr.M.M.Sundaresh, making the terms of reference as under : (1) To arrive at....
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....warded the contract to main contractor M/s. Enkem Engineers (P) Ltd. who sub- contracted to appellant and also undertook directly. The construction of CETPS is thus under the behest of the association thus formed. Merely because the contract is awarded by this association, it cannot be said that the CETP is for public interest or for non-commercial purpose. The ld. counsel has adverted our attention to the objectives contained in the Memorandum of Understanding of these associations. It is seen stated that the object of the association is to develop CETP for chemically treating and processing dyeing effluents, sewage waters from commercial establishments, factories, lodge houses, restaurants, residential houses, cinema houses and complexes as per the Pollution Control Board norms. Though CETP takes care of effluents not only of the factories, it can be seen that the said treatment plant is used in a major sense for treatment of effluents of commercial establishments, lodge, restaurants etc. The primary use of this construction of CEPT is therefore for commerce, industry. The ld. counsel has placed reliance on the decision in the case of Green Environment Services Co.op Society Ltd.....