GSPL INDIA TRANSCO LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. Service of Rule is waived by Mr. Y. N. Ravani, learned counsel appearing for the respondents. Since affidavits have been exchanged, with the consent of the learned counsel for the parties, we have taken up both the writ petition for final hearing.

(2.) The petitioners M/s. GSPL India Transco Ltd. Gandhinagar, Ahmedabad and M/s. GSPL India Gasnet Ltd., Gandhinagar, Ahmedabad are subsidiary companies of Gujarat State Petronet Ltd. which is a subsidiary company of Gujarat State Petroleum Corporation Ltd. The petitioners are Government Companies under the provisions of the Companies Act, 1956 and have obtained service tax registration from the Commissioner of Central Excise, Ahmedabad (for short the Commissioner).

(3.) The petitioners propose to provide service that would be taxable under the category of "Transport of goods through pipeline or other conduit service" under section 65(105)(zzz) of the Finance Act,1994. (for short the Finance Act). For providing service, the petitioners are required to lay pipeline for which they would be procuring pipes, get the pipes installed and commissioned along the identified route so as to connect the source to the destination. In this regard, the petitioners propose to grant various turnkey Engineering Procurement and Construction Contracts (for short the EPC Contracts) to EPC contractors. The contracts would involve supply of pipelines as well as installation and commissioning of the pipes to bring into existence the desired pipeline connecting the sources to the destination. The petitioners would also require service of other contractors for inspection, consulting, engineering etc. which would be required to being into existence the pipeline.