TMI Blog2011 (2) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... from taxable services classified under construction services and works contract services as per sub-clause (ii)( b) of the Explanation to the Works Contract service in the Act. Held that: clarification given by the Board that infrastructure activities, which are concerned with welfare activity, for the citizens of this country has been excluded from the liability of Service tax." - Hence, waiver of pre-deposit and stay of recovery of the dues adjudged against the appellants in the impugned order - Thus, pending decision in the appeal. - ST/211 OF 2010 - 90 OF 2011 - Dated:- 3-2-2011 - P. KARTHIKEYAN, M.V. RAVINDRAN, JJ. G. Natarajan for the Appellant. D.P. Nagendra Kumar for the Respondent. ORDER P. Karthikeyan, Tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of taxable services under Works Contract Service for the period 1-6-2007 onwards and did not disclose the material facts to the Department nor paid the appropriate service tax payable on these contracts. An amount of Rs. 10,39,38,126 was raised under Service Tax, including Education Cess and Secondary and Higher Secondary Education Cess and interest, penalties under sections 75, 76, 77 and 78 were also proposed. As against this, NCL vehemently contends that the purpose for which the construction activities were undertaken for the Government of AP should be taken into account before deciding to classify the said services and irrigation projects do not fall under Works Contract Services. It is also stated by them that normally Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80(IA)(4) in the Income-tax Act. "infrastructure facility" means : (a) a road including toll road, a bridge or a rail system. (b) a highway project including housing or other activities being an integral part of the highway project. (c) a water supply of project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system. (d) a port, airport, inland waterway or (inland port or navigational channel in the sea)." 2.1 They have also pleaded limitation on the basis that even prior to 1-6-2007 when works contract was brought under Service Tax net, they were engaged in provision of services and ST-3 Returns had been filed indicating the activities in respect of whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EPC) projects;" 5. We find that the applications pertaining to similar demands had been considered by this Tribunal earlier. In Ramky Infrastructure Ltd. v. CCE [2010] 27 STT 23 (Bang. - CESTAT) and Lanco Infratech Ltd. v. CST [2010] 26 STT 431 (Bang. - CESTAT), the activities involved related to services rendered by the respective appellants to the Government of Andhra Pradesh in the form of turnkey projects executed by them for the construction of dams, tunnels, distributary system to feed various ayacut, land, etc. The Tribunal had rendered the following findings in both the orders. "5. We have considered the submissions made at length and perused records. The issue involved in this case is whether the appellant is liable to pay Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lex or a part thereof; or (d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or (e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;" It can be seen from the above reproduced portion that the definition at clause (b) is for "constructions" and which is not for the purpose of commerce or industry. We find that in this case, it is undisputed that the work executed by the appellant is in respect of the irrigation system for the Government of Andhra Pradesh and is not for any commerce or industry. We find that the Board vide its circular dated 15-9-2009 has clarified as under : "3. The second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... similar activities pertaining to buildings, civil structures, pipelines or conduits. Therefore, only such electrical works that are parts of (or which result in emergence of a fixture of) buildings; civil structures, pipelines or conduits, are covered under the definition of this taxable service. Further, such activities undertaken in respect of roads, railways, transport terminals, bridges, tunnels and dams are outside the scope of levy of service tax under this taxable service. (ii) Under Erection, commissioning or installation services , the activities relevant to the instant issue are (a) the erection, commissioning and installation of plant, machinery, equipment or structures; and (b) the installation of electrical and electroni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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