9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 42 - AT - Service TaxTaxability - The respondent-assessee was providing water supply to M/s Gujarat Water Supply and Sewerage Board under Sujlam Suflam Yojna of the Government of Gujarat - whether the said service taxable as commercial and construction services or not? - Held that - the respondent is not selling water to anybody. Needless to mention that water supply projects are essential for the human beings and animals welfare for their consumption. The respondent was executing the project of the Government of Gujarat for providing water to the human beings as well as animals. No commercial activity is involved in the instant case as the water was not sold to anybody - identical issue decided in the case of Nagarjuna Construction Co. Ltd. Vs. Commr. of Central Excise, Hyderabad 2010 (5) TMI 232 - CESTAT, BANGALORE , where it was held that production of drinking water to the community in Gram Panchayats and Nagar Panchayats in the State on recovery of user charges at a highly subsidized rate, we find, does not come within the expression industry used in the definition of the taxable entry in question - appeal dismissed - decided against Revenue.
Issues:
Appeal against Order-in-Original regarding service tax on water supply contracts. Analysis: The appeal was filed by the Revenue against an Order-in-Original dated 28.11.2008 passed by the Commissioner of Service Tax, Kolkata, concerning the period from 16.06.2005 to 31.03.2007. The respondent-assessee, engaged in executing turnkey contracts for water supply to a government project, was charged service tax by the Department. However, the Commissioner allowed the claim of the respondent, leading to the appeal. The Tribunal referred to a similar case involving GWSSB and emphasized that water supply projects are essential civic amenities, not commercial activities. The Tribunal concluded that no commercial activity was involved as the water was not sold to anyone, and upheld the impugned order based on this reasoning. The appeal by the Department was dismissed, citing the earlier decision and the lack of commercial nature in the project.
|
