KEDAR CONSTRUCTIONS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE applicants filed this application for waiver of pre -deposit of service tax of Rs. 2,04,14,368/ -, interest and penalties. Major demand of Rs. 1.99 crores approximately is confirmed on the ground that the applicants have undertaken construction and repair activity which is chargeable to service tax. In this regard, the contention of the applicants is that the applicants had undertaken the work allotted by Maharashtra State Electricity Transmission Company Ltd. and M/s. Power Grid Corporation of India Ltd. in respect of construction of foundation walls for sub -station or control rooms, foundation for electricity tower etc. The contention is that this activity is exempted from payment of service tax by Notification No. ., dated 20 -7 -2010. This Notification exempts from payment of service tax in respect of all taxable service relating to transmission of electricity upto 26 -2 -2010. The applicants had also relied on the Notification No. 11/3020 -S.T., dated 27 -2 -2010 which provides exemption to service provided to any person for transmission of electricity. In view of this Notification, the demand of more than Rs. 1.99 crores is not sustainable. The applicants also relied on the decision in the case of Shri Ganesh Enterprise v. CCE & ST - : 2014 -TIOL -187 -CESTAT -Bang : 2014 (35) S.T.R. 348 (Tribunal).

(2.) IN respect of demand of Rs. 1.36 lakhs approximately which is in respect of construction of Hostel and Synthetic Track awarded by National Highway Department, the contention is that it is not a commercial or industrial construction service and therefore the demand is not sustainable. The applicants have also submitted that during investigation Rs. 18.54 lakhs is already deposited.

(3.) WE find that the major portion is confirmed in respect of the activities such as construction of sub -station, control rooms, foundation walls for sub -station, modification of control room, putting & fixing up aluminium panels at sub -stations etc. We find that the Notification No. . provides exemption to all taxable services relating to transmission of electricity till 26 -2 -2010. For ready reference Notification No. , dated 20 -7 -2010 is reproduced below: -