ANERI CONSTRUCTIONS Vs. COMMISSIONER OF CENTRAL EXCISE, SURAT

JUDGEMENT

(1.) THE prayer in the application is to dispense with the pre -deposit of Service tax of Rs. 94,23,337/ -, Rs. 17,99,016/ - and Rs. 5,20,155/ - confirmed against the applicant/appellant along with interest and the penalty of identical amounts imposed upon the applicant/appellants.

(2.) AFTER hearing both the sides, we find that the appellant is engaged in providing taxable services under the category of Commercial and Industrial Construction Services and Maintenance and Repair Services as also other services like Erection, Commissioning and Installation Services etc. It was seen that during the course of audit that the appellants have provided services of construction of pipe lines running within the industrial and commercial establishment, during the period 10 -9 -2004 to 15 -6 -2005. However, they have not paid any Service tax on the same. Accordingly, proceedings were initiated against the appellants which culminated into impugned orders confirming service tax and imposing penalties.

(3.) IT is seen that for the confirmation of facts, the adjudicating authority has taken into consideration the definition of construction services, which does not include laying down of long distance pipe lines. However, CBEC, vide its Circular No. 79/9/2004 -S.T., dated 17 -9 -2004 has clarified that any pipe line other than those running within an industrial and commercial establishments such as factory, refinery and similar industrial establishments are long distance pipe lines. Thus, construction of pipelines running within such an industrial and commercial establishment is within the scope of services levy of Service tax with effect from 10 -9 -2004.