TMI Blog2023 (4) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... tegrated 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 - thus, the demand, interest and penalty in respect of Service Tax demand on construction of canals and water pipelines works etc., carried out for the State Government along with interest and penalty. Works undertaken for NTPC - HELD THAT:- The Appellant should work out the value of services rendered along with the Service Tax demand thereon, based on all the documents available with them. After this, if they take the stand that Service Tax is not payable on any activity undertaken for NTPC, the same should be brought out along with documentary evidence supported by statutory provisions before the Adjudicating Authority - The confirmed demand in respect of NTPC transaction alone is remanded to the Adjudicating Authority to verify all the documentary evidence to be produced by the Appellant on the above counts. The final amount of demand on account of NTPC transaction will be arrived at by the Adjudicating Authority, which is requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09 11,29,88,318 2 Road works, earthwork and works to NTPC Jan' 11- May' 11 Included the above 3 Goods Transport Agency (GTA) service Oct' 10-Sep '11 11,23,161 4 Interest on short paid GTA Jan' 2005-Sept' 10 10,48,178 5 Renting of Immovable Property (RIPS) 1.6.2007 to 30.9.2011 2,19,513 6 Late fee for filing returns late 12,600 2. In respect of confirmed demand of Rs. 11,29,88,318/- the Learned Counsel appearing on behalf of the Appellant submits that this Appellant has provided the services for various irrigation projects in respect of 12 different projects. The projects pertains to construction of canals and water pipelines for the State of Andhra Pradesh. Apart from these 12 projects, in respect of one project given by NTPC Ltd., they have taken up work of construction of sewerage system fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delta system, Godavari western main canal, eluru canal and junction canal and distributory system West Godavari district. 9 EluruPkg 8 Package no 8/kds/k/07-08 Modernization of Krishna Delta System- Krishna District, KrishnaEluru canal from Km 48.720 to km 65.072 km and its Distributory system- West Godavari Dt. 10 Ponnuru 27 Package no 27/kwds/G/07-08 Modernization of Krishna Western Delta system- Guntur District, Commamuru canal from Km 65.800 km to 112.450 and branches and its distributories. 11 PKG -26 Package no 26/kwds/G/07-08 Modernization of Krishna Western Delta system- Guntur District, Commamuru Canal from km 21.600 km to 65.800 and branches and its distributories. 12 NKG Infrastructure Ltd GLIS- Phase-3, Pkg-1, issue of Work order for Earth work excavation, laying of 3000MM dia., Ms Pipes, jointing, Refilling of Trenches and Hydro testing. 13 M/s. NTPC Ltd Site levelling by filling ash/earth for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the NTPC related demand only. He assures that the Appellant will be able to give all the details of the works undertaken for NTPC and if any exemption is available, they will claim the same and finally whatsoever amount is required to be paid for such transaction by NTPC, they will pay. Therefore, he prays that the matter may be remanded to the Adjudicating Authority for the limited purpose of ascertaining the proper quantification on account of NTPC transactions. 5. In respect of demand on GTA services, the demand of Rs. 11,23,161/- has been confirmed along with interest of Rs. 10,48,178/-. He submits that in many cases the services were received from Good Transport Operators who are not GTAs. He prays that an opportunity should be given to them to get the details of services rendered by GTO and claim the benefit of Service Tax on the same before the Adjudicating Authority. Therefore, he prays that even this matter may be remanded to the Adjudicating Authority. 6. In respect of the confirmed demand of Rs. 2,19,513/- in respect of immovable property, the Learned Counsel submits that the present Appellant had let out his property to a Diagnostic Centre/Hospital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. From the Table given in the Show Cause Notice and Order-in-Original, it is seen that in respect of the 12 projects, the works undertaken by the Appellant are on account of various canal and other pipeline projects undertaken by them by way of Tender and Contract awarded by the Government of Andhra Pradesh. There is no dispute that the works have been rendered only to the Government of Andhra Pradesh. The Larger Bench in the case of Lanco Infratech Ltd vs. CCE ST, Hyderabad [2015 (38) S.T.R. 709 (Tri. - LB)] held as under: 21. In the light of the foregoing analyses, we record our conclusions on the several issues framed, as follows: (a) Issue (A): Laying of pipelines/conduits for lift irrigation systems for transmission of water or for sewerage disposal, undertaken for Government/Government undertakings and involving associated activities like trenching, soil preparation 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 Services (CICS) for the period upto 01.06.2007 and not under Erection, Commissioning or Installation Service (EC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st and penalty in respect of Service Tax demand on construction of canals and water pipelines works etc., carried out for the State Government along with interest and penalty thereof for the 12 projects cited in the Table above. 16. In respect of the works undertaken for NTPC, the Appellant should work out the value of services rendered along with the Service Tax demand thereon, based on all the documents available with them. After this, if they take the stand that Service Tax is not payable on any activity undertaken for NTPC, the same should be brought out along with documentary evidence supported by statutory provisions before the Adjudicating Authority. The confirmed demand in respect of NTPC transaction alone is remanded to the Adjudicating Authority to verify all the documentary evidence to be produced by the Appellant on the above counts. The final amount of demand on account of NTPC transaction will be arrived at by the Adjudicating Authority, which is required to be paid by the Appellant along with interest and penalty @ of 25% of the confirmed amount. 17. For the confirmed demand on account of GTA services, it is seen that when the opportunity was given to the ..... 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