9911796707
TMI Blog2010 (5) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... thousand eight hundred and fifty one only) under section 78 of the Finance Act, 1994 ('the Act'). (iii) Penalty Rs. 1,000 (Rupees one thousand only) under section 77 of the Act. 2. Appellants M/s. Ramky Infrastructure Ltd. and WPIL JV (a Joint Venture) had executed the following item of work during the period June 2007 to May 2008 under a contract with the Government of Andhra Pradesh :- "Low Level Canal Pumping Station of AMRP, on EPC basis for lifting water from fore shore of Nagarjuna Sagar Reservoir at Puttamgagandi, Nalgonda District, Andhra Pradesh." 2.1 The object of the project was to draw water from fore shore of Nagarjuna Sagar Reservoir by gravity when water level in the said Reservoir is above EL. 177M an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract wherein,- (i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods; and (ii) such contract is for the purposes of carrying out,- (a) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or (b) construction or a new building or a civil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ELT 457/[2007] 7 STT 184 (New Delhi - CESTAT), Tribunal held that a works contract on turnkey basis could not be vivisected and a part subjected to tax. Further plea advanced is that the works contract was for carrying out 'construction of a new building or a civil structure or a part thereof, or of pipeline or conduit, primarily for the purpose of commerce or industry' of clause (b) of the Explanation and therefore, clause (e) would not cover the subject activity. In terms of section 65(a) of the Act, taxable service should be classified under the entry which gives the most specific description. In the instant case, clause (b) described the impugned activity of constructing canals for irrigation purposes, which was in the nature of a civi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Explanation to the entry under section 65(105)(zzzza) of the Act. From the break up of the work involved available on record excavating and digging of underground approach canal comprises 15 per cent of the cost. Therefore, the entire activity cannot be classified under 'Site Formation and Clearance, Excavation and Earth Moving and Demolition' as argued by the appellants. The construction of canal accounts for 20 per cent of the total cost. Therefore, the activity undertaken cannot be classified as construction of a Civil Structure viz., canal. It also appears that the CBEC Circular dated 15-9-2009 relating to canal system cited by the appellants was not issued. Further, we find that in a similar case of demand against a Joint Venture in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or (b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or (c) construction of a new residential complex or a part thereof; or (d) completion and finishing services, repair, alteration, renovation or restoration of or similar services, in relation to (b) and (c); or (e) turnkey projects including engineer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
