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2011 (1) TMI 188 - AT - Service TaxCommercial or industrial construction service - Nature of contract - commercial purpose - Held that: - Any service receiver irrespective of its status or definition or composition, if utilizing the pipeline for commerce or industry, will render the provider liable to Service Tax. Therefore, strictly speaking, by Revenue’s own submissions, the status of GWSSB is not relevant. Nevertheless, this issue as to whether the GWSSB can be considered as a commercial organization, was discussed in detail in Nagarjuna Construction Co. Ltd.’s case [2010 (5) TMI 232 - CESTAT, BANGALORE] and we agree with the views taken in that case. GWSSB can not be considered as a commercial organization or the purpose of pipeline laid for them by various contractors as one for commerce i.e., to say to buy and sell water. Commercial purpose - the purpose of buying water and bringing it from Narmada Dam was not for selling it, but for supplying it to needy people. In this case, buying and selling is incidental. The purpose is supply of water to the needy citizens of the State. The term used “for commerce” would mean that only purpose would be buying and selling, which is definitely not the case here. The term used “primarily for commerce” would mean that primary purpose should be buying and selling and the other purposes also may be served incidentally. In this case, purchase and sale of water are incidental and the main purpose is supply of water to needy citizens of the State. - Decided in favour of assessee.
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