TaxTMI 
TaxTMI 
2026 (4) TMI 524
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....alia, attending to the maintenance or repair works to Naval ships and equipment's and have also attended to work related to supply, fabrication, erection, testing and commissioning of Berthing Pontoons, Dock Blocks, Wedge Blocks, Gangways etc., at Naval Dockyard, Visakhapatnam in terms of work order dated 03.05.2007. They were also engaged in the work relating to "Load testing of Transborder System of 600-T slipway of dry docks and slipway department at Naval Dockyard". The Adjudicating Authority based on the copies of the work order came to conclusion that all the repair works such as repair of conduiting and clamping, welding of high pressure air and hydraulic pipes, SS pipes etc., carried out onboard Naval ships, repair of Blanking off plate SDD Industrial pumps and maintenance works relating to maintenance of "Transborder system and allied equipment" located at Naval Dockyard under Annual Maintenance Contract entered with entire dockyard were covered under the purview of MMRS. Similarly, based on the appreciation of facts in respect of certain work orders, Adjudicating Authority felt that they have provided certain services to the entire dockyard, which also involved supply of ....
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....09-10 on the grounds that the work involved transfer of property in goods and is a turnkey project/EPC contract, his submissions is that for the earlier period the demands raised for the said fabrication and supply of pontoons under the category of WCS was dropped by the Department on the grounds that the said fabricated structures are movable and there is no erection, installation or commissioning involved. Similarly, in respect of supply of four climate control devices for LP Air Compressors Monitoring room in the Naval Dockyard pursuant to issuance of and purchase order, it was obvious that the transaction primarily involved supply of materials and therefore a purchase order was issued and not a work order therefore it is in the nature of sale of goods. c) Technical Testing and Analysis Services (TTAS): In so far as, work of Load testing of transborder system at 600-T slipway of dry docks and slipway department the Naval Dockyard, his main submissions is that the appellants are not Technical Testing or Analysis Agency. He further submits that though they were rectifying some defects, however, he categorically stated that they had not issued any "certificate" certifying ....
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....services when provided within a port or an airport. This included, inter alia, repair of ships or boats or vessels belonging to the Government of India including Navy, but not belonging to Government under Public Sector Undertaking. If the Board's clarification dated 01.07.2010 is read in tandem with Notification No. 31/2010-ST, supra, it would be obvious that such repairs of ships or boats or vessels belonging to Navy, which were earlier exempted cannot be again brought under the tax net by virtue of amendment with effect from 01.07.2010. It would mean that such repairs were exempted prior to 01.07.2010 and also post 01.07.2010. We find that any repair, maintenance services which are not used for commercial activities such services cannot be taxable. The Naval Authority and Naval Dockyards are not engaged in any commercial activity. A fine distinction being made that Naval Dockyard is different than Port service is not proper as even the Naval Dockyard is very much part of Port and in any case, it would have no meaning as the intention of the Government was to provide exemption only to Naval ships which can be repaired in Port and not at Naval Docks then only such a view can be fo....
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....es dated 20.02.2008, wherein, inter alia, it was clarified that the basic principle to be followed with regard to leviability of service tax is whether the building/civil structure is used or to be used for commerce or industry and therefore if the repair and maintenance services are linked with a building/civil structure which are not used for commercial activities such services cannot be taxable. In this regard, he relies on the decision of the Co-ordinate Bench in the case of National Refrigeration & Air Conditioning Engg Vs CCE, Ludhiana [2011 (23) STR 247 (Tri-Del)] para 12 is reproduced below for ready reference: 12. We take note of the submissions made by the learned Advocate and examined the work orders. We have seen the one of the work order No. CEWAC-38/2002-2003 wherein at Serial No. 1 to serial No. 26 there is mention of descriptions of items which have to be supplied by the appellant but serial No. 27 of the work order, it is clearly specified the labor charges for erection, commissioning and testing of the, the amount payable on this account is 5% of amount of the whole of the work order. This fact has not been examined by the adjudicating authority. We find ....