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2020 (2) TMI 110 - AT - Service TaxErection, installation and commissioning services - benefit of N/N. 25/2012-ST dated 20.6.2012 - exemption under Works Contract Service - the primary defense of the appellant is that the activity under taken by them does not fall under the category of ECIS - HELD THAT:- The Hon’ble High Court of Madras relied on the decision of Larger Bench of tribunal in M/S. LANCO INFRATECH LTD. AND OTHERS VERSUS VERSUS CC, CE & ST, HYDERABAD [2015 (5) TMI 37 - CESTAT BANGALORE (LB)] where it was held that the assessee was entrusted with the task of laying a long distance pipeline to enable the Tamil Nadu Water Supply and Drainage Board to supply water. It was an activity in public interest, to take care of the civic amenities liable to be provided by the State. Therefore, the Tribunal was right in holding in favour of the assessee - thus, the activities under taken by the appellant cannot be classified under ECIS. The other arguments of revenue regarding classification of services under Works Contract Service or Commercial or Industrial Construction Service become irrelevant as no demand under the said head has been raised by revenue. No charge for classification of the serviced provided by the appellant under the head of Works Contract or Commercial or Industrial Construction Service has been made against the appellant. In these circumstances we are unable to uphold the demand raised against the appellant in respect of activities relating to laying of pipelines for Surat Municipal Corporation, Gujarat Water Supply and Sewerage Board ( GWSSB), Canal Division, NHAI And M/s. Surat Urban Development Authority. The revenue has also argued that in some cases the appellant have acted as sub-contractor and not as main contractor. We find that the said argument is of no use as the demand has been raised solely under the category of ECIS The specific clarity of charge has been made to levy Service Tax under the category of Business Auxiliary Service and no prejudice is caused to the appellant on account of this the demand under the head of Business Auxiliary Service is confirmed. The interest and penalty in respect of Business Auxiliary Service is also upheld. The demand of duty, interest and penalties in respect of demand under ECIS category is set aside. Appeal allowed in part.
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