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2023 (4) TMI 8 - AT - Service TaxClassification of services - works contract service or not - appellant claims that the services provided would not fall under ‘works contract’ for the reason that laying of the pipeline/conduit was not for the purpose of commerce or industry - extended period of limitation - HELD THAT:- The issue as to whether laying of the pipeline for conduit purposes would fall within the definition of ‘works contract’ was elaborately considered by a Larger Bench of the 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 Construction of pipeline or conduit (otherwise than under a turnkey/EPC mode), when executed for Government/Government undertakings for transmission of water or sewerage would be outside the ambit of levy of tax, in terms of the definition itself, since this would undisputedly fall within the ambit of sub-clause (b) of WCS. A Division Bench of the Tribunal in M/S ANGRAJ CIVIL PROJECTS PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, LUCKNOW [2018 (12) TMI 251 - CESTAT ALLAHABAD], after making reference to the aforesaid Larger Bench decision of the Tribunal in Lanco Infratech Ltd., also held that the activity of laying of pipeline would not be for the purpose of commerce or industry and, therefore, would not fall within the definition of ‘works contract’ services. Thus, in view of the Larger Bench decision of the Tribunal in Lanco Infratech Ltd. and the Division Bench of the Tribunal in Angraj Civil Projects Pvt. Ltd., it has to be held that laying of pipeline for sewerage purposes would not fall within the definition of ‘works contract’ services since it was not for commerce or industry purposes. Extended period of limitation - HELD THAT:- It is not necessary to examine the contention raised by the learned counsel for the appellant that the extended period of limitation, as contemplated under the proviso to section 73(ii) of the Finance Act, could not have been invoked in the facts and circumstances of the case. Appeal allowed.
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