TMI Blog2017 (7) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... e it was held that Where under an agreement, whether termed as works contract, turnkey or EPC, the principal contractor, in terms of the agreement with the employer/ contractee, assigns the works to a sub-contractor and the transfer of property in goods involved in the execution of such works passes on accretion to or incorporation into the works on the property belonging to the employer/ contractee, the principal contractor cannot be considered to have provided the taxable (works contract) service enumerated and defined in Section 65(105)(zzzza) of the Act - matter remitted back to adjudicating authority reconsider the issue a fresh - appeal allowed by way of remand. - Stay Application No. ST/Stay/1009/2012 Appeal No. ST/1439/2012 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law, the Bench in paragraph No. 21 held as under: 21. In the light of the foregoing analyses, we record our conclusions on the several issues framed, as follows: a) Issue (A): Laying of pipelines/conduits for lift irrigation systems for transmission of water or for sewerage disposal, undertaken for Government/Government undertakings and involving associated activities like trenching, soil preparation and filling, supporting masonry work, jointing of pipes, electro-mechanical works or pumping stations and like activity, is classifiable only under Commercial or Industrial Construction Service (CICS) for the period up to 01.06.2007 and not under Erection, Commissioning or Installation Service (ECIS); (b) Issues (B), (C) and (D) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial, non-industrial purpose, in view of the exclusionary clause in clause (b) of the definition of WCS. This is the only possible and harmonious interpretation possible of the several clauses under Explanation (ii) of Section 65(105)(zzzza), a distinct taxable service defined with constituent elements thereof substantially drawn from elements of pre-existing taxable services like ECIS, CICS or COCS; and other services when bundled to amount to turnkey/EPC; (iii) Construction of canals/pipelines/conduits to support irrigation, water supply or for sewerage disposal, when provided to Government/Government undertakings would be for non-commercial, non-industrial purposes, even when executed under turnkey/EPC contractual mode and w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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