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TMI Blog2013 (12) TMI 1063X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial in nature. Generally, government buildings or civil constructions are used for residential, office purposes or for providing civic amenities. Thus, normally government constructions would not be taxable. However, if such constructions are for commercial purposes like local government bodies getting shops constructed for letting them out, such activity would be commercial and builders would be subjected to service tax. The definition of service specifically excludes construction of roads, airports, railway transport terminals, bridge, tunnel, long distance pipelines and dams. In this regard it is clarified that any pipeline other than those running within an industrial and commercial establishment such as a factory, refinery and sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, 1994; that the clarification vide C.B.E. C. Circular No. 62/11/2003-S.T., dated 21-8-2003 dealing with installation and commissioning is applicable to them and accordingly the appellant are not undertaking any commissioning of the pipeline. They also stated that as per the clarification issued by the C.B.E. C. vide Circular No. 80/10/2004, dated 17-9-2004 that government constructions will not be commercial in nature and hence not taxable. They relied upon the following case laws also : (i) Indian Hume Pipe Co. Ltd. v. CCE [2008 (12) S.T.R. 363 (Tri.-Chennai)] (ii) BBR India Ltd. [2006 (4) S.T.R. 269 (Tri.-Bang.)] (iii) Newton Engg. Chemicals v. CCE [2008 (12) S.T.R. 378 (Tri.-Ahmd.)]. 3. Commissioner (Appeals) s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erection, commissioning or installation means any service provided by a commissioning and installation agency, in relation to, - (i) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise or (ii) installation of - (a) electrical and electronic devices, including wirings or fittings therefor; or (b) plumbing, drain laying or other installations for transport of fluids; or (c) heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work; or (d) thermal insulation, sound insulation, fire proofing or water proofing; or (e) lift and escalator, fire escape staircases or travelators; or (f) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The purpose is supply of water to the needy citizens of the State. The term used for commerce would mean that only purpose would be buying and selling, which is definitely not the case here. The term used primarily for commerce would mean that primary purpose should be buying and selling and the other purposes also may be served incidentally. 7. In this background, the Board s Circular No. 80/10/2004-S.T., dated 17-9-2004 vide para 13.2 and 13.4 makes it very clear as under : 13.2 The leviability of service tax would depend primarily upon whether the building or civil structure is used, or to be used for commerce or industry. The information about this has to be gathered from the approved plan of the building or civil constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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