TMI Blog2013 (9) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 as amended 17.10.2000, 05,04,2005 and 21.11.2006 with M/s Radius Water Ltd - Held that:- Activities undertaken by the appellant are out of purview of Site Formation, and Clearance Excavation and Earthmoving and Demolition Service as defined under Section 65(97a) of the Act. On the other hand activities mentioned in para 7.1 of the Order in Original are in nature of construction of civil structure which is further supported by the fact that entries in the balance sheet are under the Heading ‘Construction Receipts’ - Appellant are covered under category of Commercial or Industrial Construction service as defined under Section 65(25b) of the Finance Act – Decided against the Assessee. Appellant is eligible for 67% abatement of gross amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Investigations were started by the Department and work orders, Agreements and invoices/bills were scrutinized. On investigation, it was felt by the Central Excise Officers that appellant has provided the services of Commercial or Industrial Construction Service as defined under section 65(25b) of the Finance Act, 1994 and appellant is liable to pay service tax amounting to Rs.71,83,080/-, Education Cess Rs. 1,43,662. Accordingly a Show Cause Notice dtd. 04.12.2007 was issued to the appellant demanding service tax amounting to Rs. 73,26,742/- along with interest and also proposing penalty under section 76,77 78 or the Finance Act. This Show Cause Notice was adjudicated by the Commissioner vide impugned order confirming the service tax of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... three agreements and scope of these agreement required extensive Civil Construction as it involved levelling of ground, construction of culverts, construction of earthen bunds with clay paddles, stone pitching of reservoir bund on top with cement grouting, construction of pumping station, canal cum Jetty, with RCC floor etc. He submits that Reservoirs is constructed to supply water to industrial units for profit and therefore these activities fall under Industrial or Commercial Construction services. He further submits that activities of the appellant do not fall under category of Site Formation and Clearance, Excavation and Earthmoving and Demolition Service as some excavation is done as part of construction work and no civil construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by us is whether these activities are covered under definition of Industrial or Commercial Construction Service as defined under section 65(25b) or under Site Formation and Clearance, Excavation Earthmoving Demolition Services as defined under Section (97a) of the Finance Act. For the sake of convenience these definitions are reproduced below: Section 65(25b):- The Commercial or industrial construction service means (a) Construction of new building or a civil structure or a part thereof; (b) .. (c) .. (d) .. 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 commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voir and other civil works. We therefore are of the view that these activities undertaken by the appellant are out of purview of Site Formation, and Clearance Excavation and Earthmoving and Demolition Service as defined under Section 65(97a) of the Act. On the other hand activities mentioned in para 7.1 of the Order in Original are in nature of construction of civil structure which is further supported by the fact that entries in the balance sheet are under the Heading Construction Receipts . We also note that reservoir is constructed for the purpose of supply of water to Industrial units on Commercial terms. We therefore agree with finding of Commissioner in holding that activities of appellant are covered under category of Commercial or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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