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TMI Blog2018 (9) TMI 2086X X X X Extracts X X X X X X X X Extracts X X X X ..... lving goods, will be covered in the sub clauses of 65(105) - thus, the service in dispute which are composite in nature, are correctly classified under works contract service . Commissioner has correctly dropped the demand for the period prior to 01.06.2007 as the works contract were not taxable prior to 01.06.2007. For the period post 01.06.2007 also demand cannot be confirmed under Commercial or Industrial Construction service under which demand was proposed in the show cause notice, as such lead will cover only service contract simpliciter, not the composite contract. Thus, the demand is not maintainable under Commercial or Industrial Construction service for the entire period in dispute. Whether the construction of Hydro Electric project is not in respect of tunnels or dams, and thus not excluded from entry of Commercial or Industrial Construction Service or works contract service ? - HELD THAT:- In the present case in the order in original, the Commissioner has discussed in detail that services in question are in respect of dams and tunnels. Since the services provided in dispute are in respect of dam and tunnel, the same is excluded from the definition of Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S. No. Appeal No. OIO No. SCN dated Period 1 58718/2013 4041/GB/2013 dt. 18.03.2013 19.04.2011 2005 to 2010 21.04.2011 2005 to 2009 2 59687/2013 105/GB/2013 dated 16.05.2013 20.10.2011 2010-11 3 59685/2013 106/GB/2013 dated 16.05.2013 21.12.2012 2011-12 3. A perusal of the impugned order in original shows that in the order proposed demand on other issues are also dropped, but the same are not challenged in the present appeal, as there is no ground in the appeal memo challenging the said issues. 4. The facts of the present case are that respondent is a company engaged in execution of various projects for construction of Hydro Electric Project and Educational Institutes. The respondent did not discharge service tax on said construction projects on the ground t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the word dam in Wikipedia which is as follows: A dam is a barrier that impounds water or underground streams. Dams generally serve the primary purpose of retaining water, while other structures such as floodgates or levees (also known as dikes) are used to manage or prevent water flow into specific land regions. Hydropower and pumped-storage hydroelectricity are often used in conjunction with dams to generate electricity. A dam can also be used to collect water or for storage of water which can be evenly distributed between locations. 7. Further, the learned Commissioner while dropping the demand with regard to construction of the hydro-electric project have vivisected the demand into sale of hydro mechanical goods electro mechanical goods and civil work relating to dams tunnels , services rendered before 01.06.2007 (when works contract was introduced), thus, dropping the demand for the prior period. Further, the adjudicating authority erred in reclassifying the classification from commercial or industrial construction service to works contract service . So far the issue of demand on construction of building for educational institution is concerned, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Section 65(105) would refer only to service contracts simpliciter and not to composite works contracts. This is clear from the very language of Section 65(105) which defines taxable service as any service provided . All the services referred to in the said sub-clauses are service contracts simpliciter without any other element in them , such as for example, a service contract which is a commissioning and installation, or erection, commissioning and installation contract. Further, under Section 67, as has been pointed out above, the value of a taxable service is the gross amount charged by the service provider for such service rendered by him. This would unmistakably show that what is referred to in the charging provision is the taxation of service contracts simpliciter and not composite works contracts, such as are contained on the facts of the present cases. It will also be noticed that no attempt to remove the non-service elements from the composite works contracts has been made by any of the aforesaid Sections by deducting from the gross value of the works contract the value of property in goods transferred in the execution of a works contract. 11. In view of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of Commercial or Industrial Construction Services under Section 65(25b) of the Act reads as under: (25b) Commercial or Industrial Construction means- (a) construction of a new building or a civil structure or a part thereof; or (b) construction of pipeline or conduit; or (c) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or (d) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is- (i) used, or to be used, primarily for; or (ii) occupied, or to be occupied, primarily with; or (iii) engaged, or to be engaged, primarily in commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams; (emphasis supplied) 14. A perusal of the dentition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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