9911796707
TMI Blog2018 (11) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... in hand, where it was held that construction of canals, laying of pipelines or conduits to export irrigation, water supply or for sewerage disposal when provided to Government or its undertakings for non-commercial non-industrial purposes, even when executed under turnkey projects /EPC contractual mode would fall within the ambit of clause (b), Explanation (ii)(b) of Section 65 (105) (zzzza) and would consequently not be exigible to service tax. The work done by the appellant in the nature of turnkey/EPC projects for Governments with respect to laying of pipes for water supply/sewerage is covered by explanation (ii)(b) of Section 65 (105) zzzza and is not exigible being not for commerce or industry. The demand of interest and penaltie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in goods together with rendition of associated services and hence there is no dispute that they are in the nature of works contracts. It has been held by the Hon ble Supreme Court the composite works contract cannot be charged to service tax prior to 01.06.2007 but the dispute pertains post 01.06.2007. Composite works contract is defined in the Section 65(105) (zzzza) as follows: (zzzza) to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams. Explanation- for the purposes of this sub-clause, works contract means a contract wherein, - i) Transfer of property in goods involved in the execut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature of EPC contracts covered by explanation (ii)(e) and therefore are exigible. It is the case of the appellant assessee that although their contracts involved transfer of goods as well as laying of the pipeline they do not fall under Explanation (ii)(b) being a laying of pipeline but are excluded since they have laid down the pipeline for the Government Department from the public was supply and transfer of sewerage and not for commerce or industry, and hence are not chargeable to service tax. It is their contention that their contracts is not EPC contracts and explanation (ii)(e) does not arise. 3. Learned Counsel for the appellant submits that in the case of Lanco Infratech Ltd., [2015 (38) STR 709 (Tri.-LB)] that Larger Bench of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
