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2023 (11) TMI 563 - AT - Service TaxRefund claim - laying of pipeline for the project of Gujarat Water Supply & Sewerage Board (GWSSB) - taxable under Industrial or Commercial Construction Service or not - HELD THAT:- As per the fact the appellant have provided the service of laying of pipeline for the project of Gujarat Water Supply & Sewerage Board (GWSSB). The laying of pipeline for the government cannot be considered as Industrial or Commercial Construction Service. This issue has been considered in the various judgments - In the case of THE COMMISSIONER OF CGST AND CENTRAL EXCISE, SURAT VERSUS M/S BMS PROJECTS PRIVATE LTD. [2017 (9) TMI 1386 - GUJARAT HIGH COURT] the Hon,ble Gujarat High Court has held that The usage charges recovered by the Board from Gram Panchayats, Nagar Palikas and Nagar Panchayats are at highly subsidized rates and therefore, cannot be considered as an industry in the sense that the said word is used in the definition of taxable entry. The Board was sustaining on the grants released by the State Government. It was therefore concluded that the pipelines were not laid to facilitate any commercial or industrial activity. Thus, it is settled that service of laying of pipeline for Gujarat Water Supply & Sewerage Board (GWSSB) is not falling under the service of industrial or commercial construction service. In the present case also since the appellant is not liable to pay the service tax they are legally entitled for the refund of service tax already paid - there are no infirmity in the order of the Commissioner (Appeal) - appeal of Revenue dismissed.
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