LANCO INFRATECH LTD. Vs. CST

JUDGEMENT

(1.) THIS stay petition is directed for waiver of the pre -deposit of the following amounts:

(2.) THE issue involved in this case is regarding the service tax liability on the appellant as regards the services rendered by them to the Govt. of Andhra Pradesh in form of turn key projects executed by them for the construction of reservoirs, canals, distributory system to feed various ayacut, land etc. The Revenue proceeded against the appellant on the ground that such an activity would fall under the category of works contract and will be covered under the definition of 'works contract' more specifically under Sub -clause (e) "turnkey projects including engineering, procurement and construction or commissioning (EPC) projects".

(3.) LD . Jt. CDR on the other hand would submit that the Revenue is taxing this under the category of works contract as the projects executed by the appellant for the Govt. of Andhra Pradesh would directly fall under the category of turnkey projects. It is her submission that the title of the agreement entered by the appellant with Govt. of Andhra Pradesh clearly indicates that it is a turnkey project and hence it would be directly covered under the category of 'works contract'. It is her submission that the adjudicating authority has correctly come to the conclusion that the appellant is liable to pay service tax on such services rendered by them. She would submit that the appellant should be put to some terms before the matter disposed of.