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2018 (2) TMI 1259 - AT - Service TaxClassification of services - some contracts executed by the appellant for the Delhi Jal Board (DJB) in which nature of work involved replacing of old damaged water line, for improvement of water supply in various villages as well as replacement of badly silted and damaged sewer lines - case of Revenue is that the services rendered by the appellant are classifiable under Management, Maintenance or Repair Service defined under Section 65 (4) of the Finance Act, 1994 - Held that: - The nature of the activity involves replacement of defective pipelines as also de-silting and repairing of existing pipelines - It is seen that the contract is for replacement of pipelines in specified segments. It is not in the nature of an ongoing maintenance contract. The perusal of the contract further reveals that the same is not in the nature of construction or laying of pipelines/conduit. After considering the nature of the activity undertaken by the appellant and perusal of a few sample contracts, it is found that the service is more specifically covered under the category of Commercial and Industrial Construction, under the Sub-clause (d) of Section 65 (25b) - further, the activity has been executed for Delhi Jal Board which is not a commercial organization. The classification under Management, Maintenance or Repair will not cover the activities of the appellant since these are not in the nature of Maintenance Contract for specified period. The activities are classified under Commercial Industrial Construction and further will not be liable of payment of Service Tax during the disputed period in as much as the activity carried out is for Delhi Jal Board which is not a commercial organization - appeal allowed - decided in favor of appellant.
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