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2024 (4) TMI 327 - AT - Service TaxNon-payment of service tax - work undertaken for the main contractor - Construction service - Site formation, Clearance, Excavation and Earth moving and demolition services - Erection, Commissioning and Installation Service - CBEC Circular No. 147/16/2011-Service Tax dated 21.10.2011 - HELD THAT:- The work undertaken by the appellant for the main contractor namely M/s. KP Buildcom was for construction of boundary wall for Pipavav port, within the port area and civil work for erection of tower - It can be seen from N/N. 25/2007-ST dated 22.05.2007 provides that activities pertaining to construction of Port are exempted by the above mentioned exemption notification. Since the construction of boundary wall and tower within the port area are very much part of the port area therefore, the provisions of Notification No. 25/2007-ST dated 22.05.2007 will certainly be applicable to the appellant being sub-contractor of the main contractor and therefore appellant shall not be liable to pay any service tax on such activity. As regards to the construction activity undertaken by the appellant for M/s. Dhenu Developers, the same was for construction of drainage pipe line for Rajkot Municipal Corporation - Hon’ble Supreme Court in its decision in COMMISSIONER VERSUS INDIAN HUME PIPES CO. LTD. [2016 (4) TMI 1465 - SC ORDER] has held assessee is engaged in laying of long distance pipelines to enable State Water Supply and Drainage Board to supply water in public interest and to take care of civil amenities. Tribunal order that aforesaid activity is a part of ‘construction activity’ not commercial in nature and accordingly not covered under erection, commissioning or installation service is accordingly agreed with. Assessee not liable to pay Service Tax. Since the activity of construction of drainage pipeline for Municipal Corporation is not for commercial purpose and therefore, the construction activity pertaining to construction of drainage pipeline for Rajkot Municipal Corporation is not liable to service tax by virtue of the fact that same is not in the nature of commercial activity and therefore same is also not liable to service tax. The impugned order-in-appeal is without any merit - appeal allowed.
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