14 May 2016
AIT-2010-225-CESTAT M/s Nagarjuna Construction Company Limited Vs. CCE, Hyderabad
a pipeline unless deployed primarily in commerce or industry or work intended for commerce or industry will not be considered to be the outcome of the activity taxable under the entry 65 (25b) viz., “Commercial or Industrial Construction Service”. - a water supply project is an infrastructure facility and a civic amenity the State provides in public interest and not an activity of commerce or industry. The impugned order also did not hold it to come under a service of commercial or industrial nature as submitted by the ld. Consultant for the Revenue. Therefore, the impugned order demanding duty on the activity of laying of pipeline interpreting it to be erection, commissioning and installation of a plant is totally misconceived and unacceptable.
You can refer to the judgement in the below link: http://www.swamyassociates.in/swamyuserfiles/file/June%202010/GWSSB%20Order.pdf
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