TaxTMI 
TaxTMI 
2024 (8) TMI 96
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....rvices of surface excavation of powerhouse at Rampur Hydro Electric Project to M/s SJVNL; entertaining an opinion that the services rendered by the appellants, setting up the power plant and not in relation to construction of dams, were not exempt from service tax; the appellants deposited Rs.40 Lakhs during the investigation; a Show-Cause Notice dated 20.04.2012 was issued to the respondents seeking to demand service tax of Rs.4,51,63,535/-, along with interest and penalties, for the period 2006-07 to 2010-11. Commissioner of Central Excise, Chandigarh vide impugned order dated 18.10.2012, confirmed the demand of Rs.2,03,037/- only and dropped the rest of the demand accepting the defence of the respondents that the services were provided by the respondent to M/s Patel Engineering; the services were in relation to the construction of dams, tunnels, roads, power houses etc. and that the services performed by the respondents were in respect of dams specifically exempted by Notification No.17/2005 dated 07.06.2005 and therefore, the appellants are not liable to pay the demand of service tax. Committee of Chief Commissioners has reviewed the impugned order passed by the Commissioner an....
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....d with respect to excavation work provided for construction of a power house. He submits that the case laws relied upon by the respondents support Revenue's claim rather than the respondent's claim. 3. Shri S.C. Kamra, learned Counsel for the respondents, submits that the issue of service tax exemption on services provided as part of Hydro Electric Project and thus construction of dam is no longer res integra; in any water harnessing system, dams and tunnels are not an end in themselves but are always designed to provide the intended purposes with association of other structures; the structure of Hydro Electric plant is part of the system and dams and channels are subset of the system; the dam and tunnel are part and parcel of Hydro Electric project. He relies on the following cases: * M/s C.P. Systems Pvt. Ltd. - 2023 (71) GSTL 70 (Tri. Del.) * Continental Construction Ltd. - 2018-VIL-97-CESTATDEL- ST. 4. Learned Counsel further submits that the entire demand is time barred; no commissions or emissions envisaged under proviso to Section 73(1) are existing in the impugned case; no evidence to the effect that the appellant has mis-declared or suppressed any material fa....
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....ation and earthmoving and demolition Services and the same was covered under Service Tax w.e.f. 16.06.2005 under section 65(97a) of chapter V of the finance act, 1994 as amended which read as under: (97a) Site formation and clearance, excavation and earth moving and demolition includes- (i) drilling, boring and core extraction services for construction, geophysical, geological or similar purposes or (ii) horizontal drilling for the passage of cables or drain pipes or land reclamation work or (iii) land reclamation work or (iv) contaminated top soil stripping work or (v) soil stabilization or (vi) demolition and wrecking or building, structure or road, but does not include such services provided in relation to agriculture, irrigation, watershed development and drilling, digging, repairing, renovating or restoring of water sources or water bodies. The definition of the service excludes from its purview above said services providedin relation to- (a) Agriculture that the art or science of cultivating the ground, including rearing and management of livestock, husbandry, farming etc. and also including in its broad sense, farming, horticulture and foresty, cheese making ....
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....ntry in the Act, refers only when dams or channels are built in isolation, is irrational and illogical. Such structures have to be part of a system and this fact does not take away the exclusion provided to them. Dam and channels are sub-sets of a HEP but that does not alter the fact that a civil structure constructed is a dam and channel on its own. 53. Under the said contracts, the Noticee has undertaken the civil construction of dams and tunnels in the nature of corrosion protection, epoxy coating, painting, polyurethane injection for grouting and blasting etc. for shaft spillways and tunnels (parts of dam) which are part and parcel of such dams and tunnels. Thus, it can be seen that the exclusion under dams and tunnels would cover all the works in the nature of civil construction of the dam or tunnel. Such a dam or tunnel would not be complete without the above said services provided by the noticee and which are part and parcel of the dam or tunnel. Therefore, the construction or civil works for dams as also of the tunnels undertaken by the Noticee are not exigible to service tax under the Act as they fall within the exclusion clause of the definition of 'commercial or indust....