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2018 (11) TMI 833 - AT - Service TaxComposite Works Contract - benefit of composition scheme - Works Contract (composition scheme for payment of Service Tax Rules) 2007 - whether the contracts entered by the appellant should be classified as construction of a pipeline primarily for non- commercial or non-industrial purposes or as turnkey/EPC projects including engineering or commissioning (EPC) projects? Held that:- The decision of the Larger Bench in the case of Lanco Infratech Ltd., [2015 (5) TMI 37 - CESTAT BANGALORE (LB)] is identical to the dispute in hand, where it was held that“construction of canals, laying of pipelines or conduits to export irrigation, water supply or for sewerage disposal when provided to Government or its undertakings for non-commercial non-industrial purposes, even when executed under turnkey projects /EPC contractual mode would fall within the ambit of clause (b), Explanation (ii)(b) of Section 65 (105) (zzzza) and would consequently not be exigible to service tax. The work done by the appellant in the nature of turnkey/EPC projects for Governments with respect to laying of pipes for water supply/sewerage is covered by explanation (ii)(b) of Section 65 (105) zzzza and is not exigible being not for commerce or industry. The demand of interest and penalties are liable to be set aside - the demand itself is not sustainable and the question of eligibility of the appellant for benefit of composition scheme becomes redundant - Appeal allowed - decided in favor of assessee.
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