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TMI Blog2013 (9) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... OU) for the manufacture of cultured pearls. On examination of appellants Profit and Loss Account for the year ending on 31.03.2006, it was noticed that large amounts are shown as income from 'Construction Receipts'. Investigations were started by the Department and work orders, Agreements and invoices/bills were scrutinized. On investigation, it was felt by the Central Excise Officers that appellant has provided the services of Commercial or Industrial Construction Service as defined under section 65(25b) of the Finance Act, 1994 and appellant is liable to pay service tax amounting to Rs.71,83,080/-, Education Cess Rs. 1,43,662. Accordingly a Show Cause Notice dtd. 04.12.2007 was issued to the appellant demanding service tax amounting to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to benefit of abatement under Notification No. 15/2004 dated 10.09.2004. He also states that demand is also time barred. 4. Ld. Joint CDR, Sh. Promod Kumar appearing for Revenue, submits that appellant has executed three agreements and scope of these agreement required extensive Civil Construction as it involved levelling of ground, construction of culverts, construction of earthen bunds with clay paddles, stone pitching of reservoir bund on top with cement grouting, construction of pumping station, canal cum Jetty, with RCC floor etc. He submits that Reservoirs is constructed to supply water to industrial units for profit and therefore these activities fall under Industrial or Commercial Construction services. He further submits that acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing of Rain cuts, laying clay puddles, stone pitching etc. and extension of secondary reservoir which involved construction of earthen bund with clay puddles, stone pitching with cement grouting etc. Issue to be decided by us is whether these activities are covered under definition of Industrial or Commercial Construction Service as defined under section 65(25b) or under Site Formation and Clearance, Excavation Earthmoving & Demolition Services as defined under Section (97a) of the Finance Act. For the sake of convenience these definitions are reproduced below: Section 65(25b):- The Commercial or industrial construction service means (a) Construction of new building or a civil structure or a part thereof; (b) ................. (c) ... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service nor these relate to repairing/renovating water sources as water sources in present case is river. Some part of site formation, excavation and earthmoving done by the appellant was for preparing of further construction of reservoir and other civil works. We therefore are of the view that these activities undertaken by the appellant are out of purview of Site Formation, and Clearance Excavation and Earthmoving and Demolition Service as defined under Section 65(97a) of the Act. On the other hand activities mentioned in para 7.1 of the Order in Original are in nature of construction of civil structure which is further supported by the fact that entries in the balance sheet are under the Heading 'Construction Receipts'. We also note that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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