No Service Tax Payable On Service Of Laying Of Pipeline For Gujarat Water Supply & Sewerage Board: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on the service of laying a pipeline for the Gujarat Water Supply and Sewerage Board (GWSSB).

The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that the service of laying pipelines for GWSSB does not fall under the service of industrial or commercial construction.

The department has filed an appeal against the order-in-appeal passed by the Commissioner. The Commissioner (Appeal) held that the laying of pipelines for the project of the Gujarat Water Supply and Sewerage Board (GWSSB) is not taxable under the Industrial or Commercial Construction Service, and consequently, the service tax paid by the respondent was allowed as a refund.

The assessee/respondent contended that the issue is no longer res-Integra, as in the catena of the judgments, it has been held that the service of laying of pipelines and installation of pumping stations provided to the Gujarat Water Supply and Sewerage Board (GWSSB) is not an industrial or commercial construction service. It is not taxable.

The tribunal noted that the appellant has provided the service of laying the pipeline for the project of the Gujarat Water Supply and Sewerage Board (GWSSB). The laying of pipelines for the government cannot be considered an industrial or commercial construction service.

The CESTAT stated that the appellant is not liable to pay the service tax; they are legally entitled to a refund of the service tax already paid.

Counsel For Appellant: Rajesh K Agarwal

Counsel For Respondent: Rahul Patel

Case Title: C.S.T.-Service Tax - Ahmedabad Versus Ramky Infrastructure Ltd

Case No.: Service Tax Appeal No. 543 of 2012 - DB

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