TMI Blog2021 (9) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was engaged in erection, installation, testing and commissioning of electrical works and it belies logic to expect electrical works to generally exist independent of civil structure as well as in disregarding the critical indispensability of electrical installation in civil structures. To segregate one component out of the entirety of civil structure does not appear to be the intendment of law. The retrospective effect of the exemption is applicable to the electrical works executed, and the maintenance undertaken, by the appellant for Goa State Industrial Development Corporation (GSIDC) and Goa Medical College (GMC) - Appeal allowed. - ST/86858/2017 - A/86749/2021 - Dated:- 9-9-2021 - MR C J MATHEW, MEMBER (TECHNICAL) AND MR AJAY SHARMA, MEMBER (JUDICIAL) Shri C S Biradar, Advocate for the appellant Shri Nitin M Tagade, Joint Commissioner (AR) for the respondent ORDER In this appeal, M/s Goa Friends Engineering Electricals Pvt Ltd seeks approval of their claim for refund of tax discharged by them under section 66B of Finance Act, 1994 on rendering of works contract and maintenance of sub-stations services between 1st April 2015 and 29th F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng rejected solely on the finding that the activity of the appellant could not be construed as civil work or any other original works as intended by rule 2A of Service Tax (Determination of Value) Rules, 2006. He further submitted that the several contentions to the contrary were discarded by the original, and appellate, authority with the bald finding that electrical works could not be placed within the ambit of 12A. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or (c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause (44) of section 65B of the said Act; under a contract which had been entered into prior to the 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent that it impacted continuous supply of service contracted before such withdrawal and the statutory enablement, by section 102 of Finance Act, 1994, to claim refund of tax already discharged. The appellant sought refund of ₹ 28,82,896/- paid on consideration received in connection with undertaking of electrical circuitry in structures executed by Goa State Industrial Development Corporation (GSIDC) and maintenance of sub-stations that fed energy requirements of Goa Medical College (GMC). That these entities are encompassed within eligible bodies enumerated in the said incorporations to the exemption notification and insertion in Finance Act, 1994 is not in dispute; neither is the bar of limitation nor the commencement of validity of the contract before 1st March 2015. Consequently, attributable to the agreement with the recipients was the mutual understanding that tax was not includible in the consideration owed to the appellant upon whom any subsequent imposition would devolve. The proceedings before the lower authorities were, thus, limited to conformity of the impugned activity to one of the descriptions in the restored exemption. 7. The retrospective exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instituting of proceedings for recovery of tax that had not been paid. The ineligibility of the activity of the appellant for exemption after 1st March 2015, as held by the lower authorities, implied evasion of tax for the period before that. This inconsistency of approach to tax liability would make it appear that that ineligibility for exemption has been contrived solely for denial of refund. This inference is reinforced by the clarification communicated in circular no. 123/5/2010-TRU dated 24th May 2010 of Central Board of Excise Customs that 2. Scope of certain taxable services in brief; (i) Commercial or industrial construction services , in brief, cover construction of and the completion, finishing, repair, alteration, renovation, restoration or similar activities pertaining to buildings, civil structures, pipelines or conduits. Therefore, only such electrical works that arc 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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