Electrosteel Castings Limited Vs Commissioner of Service Tax (CESTAT Kolkata)
CESTAT Kolkata held that activity of laying down the pipelines for Government/ Government Undertaking for supply of water from Kerala Water Authority (KWA) in Thiruvananthapuram city doesn’t attract service tax. Accordingly, refund claim allowed.
Facts- The present appeal is filed by the appellant against the rejection of claim of refund of service tax paid by the appellant under the category “works contract services” in respect of a composite contract involving the construction/laying down of drinking water supply pipeline awarded by Kerala Water Authority (KWA) for Thiruvananthapuram city region for the period 1st June, 2007 to 31st October, 2012.
Conclusion- Held that the 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 would fall within the ambit of clause (b), Explanation (ii) of Section 65(105)(zzzza); and would consequently not be exigible to Service Tax.
Held that the appellant is not liable to pay service tax for the activity undertaken by them for laying down the pipelines for Government/Government Undertakings for supply of water from KWA in Thiruvananthapuram City.
Held that the refund claims filed by the appellant, are not hit by the provisions of Section 11B of the Central Excise Act, 1944 as the service tax has been paid by the appellant under mistake of law.
