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TMI Blog2009 (12) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... ts including engineering, procurement and construction of commissioning (EPC) projects". Held that – work executed not for commerce or industry. C.B.E&C. Circular dated 15.09.2009 excluding such welfare activity. Held that- prima facie case made out. Thus, waive the pre deposit. - ST/476/2009 - 1803/2009 - Dated:- 29-12-2009 - S/Shri M.V. Ravindran, Member (J) and P. Karthikeyan, Member (T) REPRESENTED BY: Shri G. Shivadass, Advocate, for the Appellant. Shri P.R.V. Ramanan, Spl. Counsel, for the Respondent. [Order per M.V. Ravindran, Member (J)]. - This stay petition is filed for waiver of the pre-deposit of the following amounts:- a. Service Tax - Rs.2,79,12,913/- b. Interest. c. Penalty @ 2% u/s 76. d. Penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue till 1/6/2007, when works contract service was introduced in the Finance Act. It is his submission that in the works contract also, there is a clause which identifies the activity of construction activity for commercial or industrial purposes. It is his submission that the projects which are executed by the appellant would not be liable for service tax liability due to the reason that the Revenue in their circular No.116/10/2009-ST dt.15/9/2009 has clearly clarified that the work intended for commerce or industry will only be taxed and does not include the work or services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams. He would submit that in this case there is no dispute as to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e put to some terms before the matter disposed off. 5. We have considered the submissions made at length and perused records. The issue involved in this case is whether the appellant is liable to pay service tax on the services rendered by them by executing irrigation project which includes construction of Dam, canal, feeder system etc. Prima-facie, we find that the said services may be covered under the 'works contract'. The definition of 'works contract' services is reproduced herein below:- "Section 65(105)(zzzza) to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams. Explanation:- For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrigation system for the Government of Andhra Pradesh and is not for any commerce or industry. We find that the Board vide its circular dt.15/9/2009 has clarified as under:- "3. The second issue is about Government taking up construction activity of dams, buildings or infrastructure construction etc. through EPC (Engineering Procurement and Construction) mode. The said service is covered under Section 65(105) (zzzza) of Finance Act, 1994. The said section itself excludes works contract in respect of dams, tunnels, road, airports, railways, transport terminals, bridges and tunnels executed through EPC mode. Hence, works contract in respect of above works even if done through EPC mode are exempt from payment of service tax." It can be s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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