2010 (12) TMI 412 - AT - Service Tax

Waiver of pre-deposit - In the case of Indian Hume Pipe Co. Ltd. v. CCE (2008 -TMI - 30780 - CESTAT, CHENNAI) the Tribunal) had held that a water supply project was an infrastructure facility and a civil amenity the state provided to the public and was not an activity of industry held that GWSSB was not engaged in any industry - Considered the view taken in some cases that for the purpose of Industrial Disputes Act, 1947, GWSSB was an industry - In the circumstances pending consideration of contentious arguments raised by the revenue, order complete waiver of the dues adjudged against the appellant consistent with our earlier stay order - The stay petition is allowed.

Summary

Issues:
Waiver of pre-deposit of service tax, interest, and penalty under section 76 of the Finance Act, 1994 for the appellant engaged in laying pipeline for Gujarat Water Supply and Sewerage Board (GWSSB) under contract.

Analysis:
The appellant, M/s. IVRCL Infrastructures & Projects Ltd., sought a waiver of pre-deposit of service tax, interest, and penalty imposed under section 76 of the Finance Act, 1994. The Commissioner had held the appellant liable to pay service tax for laying pipelines for GWSSB under 'commercial or industrial construction service.' The appellant relied on a previous Stay Order where it was found that the activity could not be classified as such. The Tribunal had previously held that GWSSB was not engaged in any industry and laying pipelines was not for a person primarily involved in commerce or industry. The Tribunal also cited a case where a water supply project was considered an infrastructure facility, not an industrial activity. The Tribunal granted a complete waiver of dues adjudged against the appellant, linking the current appeal with other related appeals for a future hearing.

Conclusion:
The Tribunal, after considering the submissions from both sides and previous judgments, granted a waiver of the service tax, interest, and penalty for the appellant. The decision was based on the finding that GWSSB was not engaged in industry and that laying pipelines was not an industrial activity. The Tribunal's decision was consistent with previous orders and was not stayed by any superior court. The appeal was linked with other related appeals for a future hearing, ensuring a comprehensive review of the matter.