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TMI Blog2018 (2) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... activity involves replacement of defective pipelines as also de-silting and repairing of existing pipelines - It is seen that the contract is for replacement of pipelines in specified segments. It is not in the nature of an ongoing maintenance contract. The perusal of the contract further reveals that the same is not in the nature of construction or laying of pipelines/conduit. After considering the nature of the activity undertaken by the appellant and perusal of a few sample contracts, it is found that the service is more specifically covered under the category of Commercial and Industrial Construction, under the Sub-clause (d) of Section 65 (25b) - further, the activity has been executed for Delhi Jal Board which is not a commercial orga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd they came to the view that the services rendered by the appellant are classifiable under Management, Maintenance or Repair Service defined under Section 65 (4) of the Finance Act, 1994. Accordingly, Service Tax was demanded for the period 2005-06 to 2009-10, totally amounting to ₹ 1,51,78,204/- along with interest and penalties under different Sections of the Finance Act, 1994. Aggrieved by the impugned order the present appeal has been filed. 2. With the above background we heard Shri Abhishek Jajoo, Ld. Advocate appearing for the appellant and Shri Sanjay Jain, Ld. DR appearing for the Revenue. 3. The Ld. Advocate appearing for the appellant submitted that instead of the service of Management, Maintenance or Repair under which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Services rendered by the appellant for Delhi Jal Board. The nature of the activity involves replacement of defective pipelines as also de-silting and repairing of existing pipelines. We have perused a few sample contracts which have been executed by the appellant for the Delhi Jal Board. It is seen that the contract is for replacement of pipelines in specified segments. It is not in the nature of an ongoing maintenance contract. The perusal of the contract further reveals that the same is not in the nature of construction or laying of pipelines/conduit. 6. The two categories of services under which the classification may be considered are:- i. Commercial and Industrial Construction falling under 65 (25b) which is reproduced below ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any goods, excluding a motor vehicle;] 3[Explanation.- For the removal of doubts, it is hereby declared that for the purposes of this clause,- (a) "goods" includes computer software; (b) "properties" includes information technology software;] 7. After considering the nature of the activity undertaken by the appellant and perusal of a few sample contracts, we are of the view that the service is more specifically covered under the category of Commercial and Industrial Construction, under the Sub-clause (d) of Section 65 (25b). Further we note that the activity has been executed for Delhi Jal Board which is not a commercial organization. The classification under Management, Maintenance or Repair will not cover th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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