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2010 (5) TMI 232 - AT - Service TaxCommercial or Industrial Construction Services- Lying of pipelines for water supply. Lying of pipeline system for Gujarat Water Supply and Sewerage Board (GWSSB) for supply of drinking water to Gram Panchayats and Nagar Panchayats. Demand confirmed on the ground that GWSSB engaged in trading water and the same amounted to commercial activity. GWSSB constituted mainly to ensure supply of drinking water and maintenance of severage system. Held that- production of drinking water to the community in Gram Panchayats and Nagar Panchayats in the State on recovery of user charges at a highly subsidized rate, we find, does not come within the expression 'industry' used in the definition of the taxable entry in question. - the Commissioner accepted that the contract involved was a composite contract. While demanding tax on construction service being part of the composite contract, the Adjudicating Authority had vivisected the composite contract and found part of it liable to service tax. - demand on 'construction service' is contrary to the ratio of the Tribunal's decision in Diebold Systems (P) Ltd. v. CCE case -
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