GUJARAT APOLLO INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) SERVICE tax demand of Rs. 12,78,346/ - with interest as applicable has been confirmed and penalties under various Sections of Finance Act, 1994 have been imposed on M/s Gujarat Apollo Industries Ltd (GAIL for short). According to the contract between GAIL and Gujarat Water Supply & Sewerage Board (GS&SB for short), GAIL undertook the work of supply, erection, testing, commissioning, operation and maintenance of water meters.

(2.) LEARNED advocate on behalf of the appellant submitted that GWS&SB is A State Government autonomous body supplying water to rural and urban area at subsidized rates in terms of Gujarat Water Supply & Sewerage Act, 1978. He submits that a similar case had come up before the Tribunal in the case of Nagarjuna Constructions v. CCE, Hyderabad as reported in, 2009 TIOL 1156 CEST BANG. In that case, the Tribunal had considered the provisions of Section 14 of the Act cited above and had observed that the activity of laying the pipelines in that case could not be considered as service of Commercial or Industrial Construction. Further, he also relied upon the decision of the Tribunal in the case of Indian Hume Pipes Co. Ltd. v. CCE Trichy as reported in : 2008 (12) STR 363 (Tri -Del). Further, he also submits that what was undertaken by them was the turnkey project whereas the department has vivisected the Contract. We find that the issue is covered by the decision cited by the learned advocate.

(3.) UNDER these circumstances, we consider that the appellant has made out a prima facie case in their favour for waiver of pre -deposit and grant of stay. We, accordingly, allow the stay petition against the recovery of dues during the pendency of the appeal.