NAGARJUNA CONSTRUCTIONS Vs. THE COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) IN terms of the impugned order, the appellant is required to discharge service tax liability of Rs. 7,15,36,082/ - along with interest; and penalty of Rs. 8,00,00,000/ - under Section 78, in addition to penalty at the rate of two percent per month on the service tax amount under Section 76 of the Finance Act, 1994.

(2.) HEARD both the sides in the matter.

(3.) THE learned Jt. CDR pointed out that the pipelines had been laid by the appellants for carrying Water purchased by GWSSB and the water was sold at the subsidized rate to the local bodies and at higher rates to the industries. Therefore the appellants were engaged in the commercial activities and in terms of the definition of 'Commercial or Industrial Constructions Services', the said activity would be taxable under the Finance Act, 1994.