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TMI Blog2025 (1) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax. M/s NTPC is a public sector undertaking under the ownership of the Ministry of Power and is under control of the Government of India and is engaged in generation of electricity. Hon ble Apex Court in the case of COMMISSIONER, CUSTOMS CENTRAL EXCISE AND SERVICE TAX, PATNA VERSUS M/S SHAPOORJI PALLONJI AND COMPANY PVT. LTD. ORS. AND UNION OF INDIA ORS. VERSUS M/S SHAPOORJI PALLONJI AND COMPANY PVT. LTD. [ 2023 (10) TMI 748 - SUPREME COURT] has considered the scope of definition of Governmental Authority and as per the settled position of law, a Governmental Authority means an authority or a board or any other body: (i) set up by an Act of Parliament or a State Legislature; or (ii) established by government with 90% or more participation by way of equity or control to carry out any function entrusted to a municipality under Article 243W of the Constitution . Extended period of limitation - HELD THAT:- The invocation of extended period in the present case is also not warranted because the appellant had a bona fide belief that no service tax was attracted on the value of services rendered by them to turnkey projects being a minor sub-contractor in projects declared by Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same. Thereafter, with the aid of machinery and labour, clay/aggregate material was compressed layer upon layer for form earthfilled/corefilled dam. Further, the appellant was also granted work order for cleaning and caulking work at dam, spillway, galleries etc. 2.2 The department alleged that the appellant has rendered taxable services under the scope of manpower recruitment or supply agency and site formation and clearance excavation and earthmoving and demolition services, for which the appellant did not obtain service tax registration and did not deposit the due service tax liability thereon in government exchequer. On these allegations, a show cause notice dated 01.10.2014 was issued by the department to the appellant for evasion of service tax of Rs.1,90,84,482/- for the period 01.04.2009 to 31.03.2013. The Original Authority confirmed the demand proposed in the show cause notice alongwith interest and penalty vide an ex-parte order dated 28.03.2018 on the ground that the appellant was providing manpower recruitment or supply agency service and site formation and clearance excavation and earthmoving and demolition service and was also supplying labour, which is taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and were exempted by name up to 30.06.2012 vide Notification No. 17/2005-ST dated 07.06.2005. He also submits that for the period with effect from July 2012 onwards, the impugned services were squarely covered under Negative List vide clause 12 (a) and (d) of Notification No. 25/2012-ST dated 20.06.2012. 4.5 He further submits that the impugned services were provided directly or indirectly to M/s NTPC which is a governmental authority and were exempted from levy of service tax. 4.6 He further submits that the entire demand is barred by limitation as the appellant had a bona fide belief that no service tax was attracted on the value of services rendered by them to turnkey projects being a minor sub-contractor in projects declared by Government of India as Mega Development Project of National Importance. The appellant even did not get itself registered due to the said bona fide belief and also did not recover any service tax from the main contractor M/s ITD or from M/s NTPC; and there was no intention to evade payment of service tax. 5. On the other hand, the learned Authorized Representative for the Revenue reiterates the findings of the impugned order and submits that the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssigned the following work: a ) excavation of clay, loading, transportation and unloading at dam site also referred in some documents as sub-contract for clay extraction and hauling from Naulakha and Kanaid Clay Borrow ; and b ) supply of manpower for cleaning and caulking work at dam under KOLDAM Project. 8. Further, we find that the show cause notice dated 01.10.2014 was issued by the department for evasion of service tax on the allegation that the appellant has rendered taxable services under the category of manpower recruitment or supply agency and site formation and clearance excavation and earthmoving and demolition services and did not obtain service tax registration and also did not deposit the service tax liability in government exchequer. 9. Further, we find that the alleged services rendered by the appellant were related, bundled and undertaken in course of construction, repair, maintenance etc of the same dam i.e. coffer dam at KOLDAM which were specifically exempted by name up to 30.06.2012 vide Notification No. 17/2005-ST dated 07.06.2005. The said notification is reproduced herein below: Notification No. 17/2005-ST dated 07.06.2005 Exempts the site formation and clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks; 10. Further, we find that in this case, the services were provided to M/s NTPC which is a governmental authority and were exempted from levy of service tax. M/s NTPC is a public sector undertaking under the ownership of the Ministry of Power and is under control of the Government of India and is engaged in generation of electricity. 11. We also find that the Hon ble Apex Court in the case of CCE ST, Patna vs. M/s Sapoorji Pallonji and Company Ltd 2023 (79) GSTL 145 (SC) has considered the scope of definition of Governmental Authority and as per the settled position of law, a Governmental Authority means an authority or a board or any other body: (i) set up by an Act of Parliament or a State Legislature; or (ii) established by government with 90% or more participation by way of equity or control to carry out any function entrusted to a municipality under Article 243W of the Constitution . 12. We also note that the principal bench of the Tribunal in the case of Commissioner of Service Tax, Delhi vs. C.P. Systems Pvt Ltd 2023 (71) GSTL 70 (Tri. Del.) has also examined the scope of Work Contract service vis- -vis the other services namely commercial or industrial construction servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n providing construction services. The dispute in the present case is with reference to certain projects executed by the assessee as follows :- (i) Maneri Bhali Hydro-Electric Project for the following work :- Construction of Barrage, Intake, Sedimentation Chamber, Fore Bay, Flushing Conduit etc. and Head Race Tunnel (upto 4.5 KMs.) from Joshiyara End. (ii) Similarly the contract agreement with Himachal Pradesh Electricity Board describes the scope of the work allotted to the noticee as under : LARJI HYDRO-ELECTRIC PROJECT (126 MW), DISTRICT MANDI (H.P.) Whereas the Himachal Pradesh State Electricity Board invited tenders for Construction of 2075m long, 10.5m dia modified horse show shaped Highway (NH-21) Tunnel as extension of existing Highway Tunnel from RD 646.30m including 125m long, 7.25m x 6.5m D-shaped construction Adit of Larji HEP . 2. In the show cause notice issued by the Revenue, it was proposed to charge service tax in respect of the activities carried out in the above two projects under the category of Commercial and Industrial Construction Services . It was represented by the assessee that in such projects the activities carried out by the appellant are towards const ..... X X X X Extracts X X X X X X X X Extracts X X X X
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