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TMI Blog2013 (10) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... works contract service'. Based on the data/ documents submitted by the appellant, a show-cause notice dated 08.4.2011 was issued by the Commissioner of Customs, Central Excise & Service Tax, Hyderabad-II Commissionerate alleging that the appellant had evaded service tax on the value of services provided under the category of execution of works contract and accordingly demanded Rs. 5,08,90,503/- towards service tax and cess payable under Section 73(1) of the Finance Act, 1994, and that the appellant is liable to pay interest under Section 75 of the Act and penal action under Sections 76 & 77 of the Act. 1.2. In the instant case, the demand of service tax amounting to Rs. 5,08,90,503/- is for the period from October 2009 to September 2010 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es for lifting the water from source to the canal and for further transmission of water. These projects were undertaken by Government of Andhra Pradesh, Irrigation & CAD Department for the purpose of providing water for Irrigation Schemes. Lift Irrigation is a method of irrigation in which water is not transported by natural flow (as in gravity-fed canal systems) but is lifted with pumps or other means. Lift irrigation schemes must accomplish two main tasks: first, to carry water by means of pumps from the water source to the main delivery chamber, which is situated at the top most point in the command area; second, they must distribute this water to the field of the beneficiary farmers by means of a suitable and proper distribution. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to execution of a works contract in respect of canals, other than those primarily used for the purposes of commerce or industry , from the whole of service tax leviable thereon under section 66 of the said Act." It can be seen from the Notification that the exemption is available in respect of taxable service in relation to execution of works contract in respect of canals. Prima facie , we felt that there is no dispute as to whether the appellant's service is covered under works contract service or not. Therefore, the question is to be determined is whether the appellant's work can be considered as 'works contract service' in respect of canals. 4. It was submitted by learned Authorised Representative on behalf of Revenue that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of Hon'ble Supreme Court in the case of Union of India and Another vs. Vijay Chand Jain, decided on 09.2.1977 reported in 1977 AIR 1302, to submit that meaning of words 'in respect of' has a wider connotation than submitted by learned AR. 6. After considering the above submissions and the meaning of the words 'in respect of', prima facie conclusion is that the expression covers the work undertaken which is in relation to canals. Undisputedly, the pump house and other facilities were erected by the appellant to lift the water from lower level to higher level of canals. In these circumstances, the appellant has made out prima facie case for complete waiver in view of the fact that the period involved is subsequent to October 2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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