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TMI Blog2024 (2) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Andhra Pradesh State Irrigation Development Corporation Ltd., Panchayat Raj RWS, Public Health etc., on composite/Turnkey basis. The said organization had, apart from purchasing the pipes from the noticee, entrusted the work of erection, Commissioning and Installation of pipes for water supply. The scope of such work also includes earth work, laying, jointing, testing for raw water, pumping main, clear water transmission, construction of foot bridge, sump, pump house, supply, delivery and erection of pump sets and Transformers, supply, laying and testing of distribution system and maintenance for one year. A Show cause notice was issued to appellant for demand of service tax liability on the amounts received for this activity undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be taxed as Larger Bench of Tribunal in the case of Lanco Infratech Limited Vs. CCE, Hyderabad [2015 (38) STR 709 (Tri-LB)] held so. He draws our attention to the said judgments. After the ruling of Larger Bench, the Tribunal in the case of Shonan Siddhart (J.V) Vs. CCE [2017 (51) STR 64] on similar set of facts, held that providing laying of pipeline for irrigation scheme cannot be taxed under erection commissioning or installation services. 4. Learned Departmental Representative reiterates the findings of the lower authorities. 5. On careful consideration of submissions made by both sides and on perusal of records, it is noticed that the Adjudicating Authority in the impugned order has specifically recorded that the issue is - whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rage, undertaken for Government/Government undertakings should be classified under ECIS as erection, commission or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise; or installation of plumbing, drain laying or other installations for transport of fluids, enumerated in Section 65(105)(zzd) and defined Section 65(39a), during 16-6-2005 to 31- 5-2007; or must be classified under CICS, as amounting to construction of pipeline or conduit; and if classifiable under the later provision, whether the activity is not taxable since it is not used or to be used, engaged or to be engaged primarily for industry or commerce? (B) Whether construction of canals for irrigation purposes and laying of pipelines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that clause (e) being an independent entry, activities falling thereunder would be taxable even if the rendition of service thereby or thereunder, was not primarily for noncommercial or non-industrial purposes? and (E) Where execution of the whole or a part of the work is subcontracted on back to back basis by the main contractor (which is a joint venture) to sub-contractors, in the absence of any transfer of property in goods involved in the execution of such works, from the main contractor to the Government/Government undertakings, whether levy of Service Tax in the hands of appellant (main contractor) is valid under WCS, in the light of the judgment in State of A.P. v. L & T Ltd. - 2008-TIOL-158-VAT-SC." After formulating the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paration and filling, supporting masonry work, jointing of pipes, electro-mechanical works or pumping stations and like activity, is classifiable only under Commercial or Industrial Construction Service (CICS) for the period up to 1-6-2007 and not under Erection, Commissioning or Installation Service (ECIS); (b) Issues (B), (C) and (D) : (i) Construction of canals for irrigation or water supply; construction or laying of pipelines/conduits for lift irrigation conceived and integrated into a dam project, must be classified as works contract "in respect of dam" and is thus excluded from the scope of "Works Contract Service" defined in Section 65(105)(zzzza) of the Act, in view of the exclusionary clause in the provision; (ii) Turnkey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and other services when bundled to amount to turnkey/EPC; (iii) Construction of canals/pipelines/conduits to support irrigation, water supply or for sewerage disposal, when provided to Government/Government undertakings would be for non-commercial, nonindustrial purposes, even when executed under turnkey/EPC contractual mode and would fall within the ambit of clause (b), Explanation (ii) of Section 65(105)(zzzza); and would consequently not be exigible to Service Tax, in view of the exclusion enacted in clause (b); and (c) Issue (E) : Whereunder an agreement, whether termed as works contract, turnkey or EPC, the principal contractor, in terms of the agreement with the employer/contractee, assigns the works to a sub-contractor and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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