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TMI Blog2016 (10) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... dustrial uses. M/s NTPC Ltd. is a Public Ltd. Company and indeed engaged in the industrial and commercial activities i.e. generation of power and selling thereof. Therefore the laying of pipeline even for providing to water supply to staff quarter is not for social or philanthropic purposes. The staff quarter and welfare of the employee is part of the statutory obligation of M/s NTPC Ltd. for ultimate object of running the commercial and industrial organisation. Therefore the service provided by the appellant is for use in the activity of commercial or industrial activity - service provided by the appellant to the respondent M/s NTPC Ltd. clearly falls under the category of Commercial or Industrial Construction Service - service Tax levi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endered to local statutory bodies in discharge of their duty to provide civic amenities, however the demand of Service Tax ₹ 1,15,505/- was confirmed on the construction services provided to NTPC, penalties under Section 76, 77 78 were also imposed commensurate to the demand of ₹ 1,15,505/-. 2. Shri Mayur Shroff learned Counsel for the appellant submits that the appellant has provided the service of laying of pipelines for water supply to the residential complex of NTPC. He submits that as per the definition of Commercial or Industrial Construction Service should be used, or to be used primarily for or occupied, or to be occupied primarily with or engaged, or to be engaged, primarily in commerce or industry. He submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uppression cannot be alleged. Accordingly, the extended period of demand should not have been invoked; therefore the demand is time bar. He submits that the appellant have recorded the transaction in the books of account and from the very same records this non-payment of Service Tax was observed. Had the appellant any malafide intention they would not have shown the transaction in their books. The non-payment of Service Tax has occurred only due to bonafide belief that the service provided by them does not fall under the category of Commercial or Industrial Construction Service. Therefore neither the extended period is invokable nor is any penalty imposable. 3. Shri A.K. Goswami, learned Additional Commissioner (A.R.) appearing on behal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e statutory obligation of M/s NTPC Ltd. for ultimate object of running the commercial and industrial organisation. Therefore the service provided by the appellant is for use in the activity of commercial or industrial activity. As regard the judgment relied upon by the learned Counsel, on reading of the same, we find that in all the judgments service were provided to a Government of Gujarat Water Supply and Sewerage Board and Construction of Sports Complex Stadium, allowed to be used by public. Therefore the services were provided not for commercial or industrial uses. In the present case, the service of laying of pipe is provided to M/s NTPC Ltd. which is a commercial or industrial organisation. Therefore ratio of none of the judgments is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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