TaxTMI 
TaxTMI 
2026 (4) TMI 1659
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....ed on the appellant by the Adjudicating Authority (impugned order). 2. The issue, in brief, is that the appellant is engaged in providing certain taxable services of Works Contract Service (WCS) in relation to certain turnkey EPC projects in respect of canals. The Department felt that the said activity would fall under Section 65(105)(zzzza) of the Finance Act 1994 specifically covered under Clause (e) of Explanation (ii) to Section 65(105)(zzzza) of the Finance Act 1994. Department felt that by virtue of certain notifications and definitions, only those EPC contracts which are in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams or construction of airports were not taxable or exempted under the categor....
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....vyuga-Sew Joint Venture Vs Commissioner of Service Tax, Hyderabad [2020 (34) GSTL 468 (Tri-Hyd)]. His main submission is that in view of these judgments, the classification of the said activity itself could not be covered within the definition of WCS and therefore on this ground itself the demand will fail. 5. On the other hand, Learned AR reiterates the findings and also highlights that Commissioner has correctly held that notification dated 23.10.2009 cannot be applied retrospectively, whereby, the exemption was extended for construction of canal for the Government. 6. Heard both the sides and perused the records. 7. The short issue to be decided in this case is whether their activity of constructing canal is covered and classifi....
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....ry clause in the provision; (ii) Turnkey/EPC project contracts, enumerated in clause (e), Explanation (ii) in Section 65(105)(zzzza) of the Act is a descriptive and ex abundant cautela drafting methodology. In the light of the decision in Alstom Projects India Ltd., fortified by the Special Bench decision (dated 19-3-2015) in Larsen & Toubro Ltd. reference, a turnkey/EPC contract is taxable prior to 1-6-2007 as well. On and since 1-6-2007, turnkey/EPC contracts must be classified on the basis of the essential character of the service provided thereby, with the aid of classification guidelines set out in Section 65A(2) of the Act. Consequently, a turnkey/EPC contract must be classified under any of the clauses (a) to (d), Explanatio....
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....in dispute that this work has been awarded by the Government of Andhra Pradesh. We find that as per the contracts involved in the present appeal, the contracts were for construction of canal linking dams or reservoirs and therefore it is apparently relating to carrying water for irrigation or for drinking water purpose only. Therefore, following the decision of the Larger Bench, supra, as the judicial discipline would require us to do, we find that in this case, the activity of construction of canal in relation to reservoir, dam etc., which has been awarded by the Government of Andhra Pradesh and for a non-commercial activity, would get excluded from the definition of WCS itself. In view of the same, the demand would not sustain on the grou....