Tubewell drilling supply and installation

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PAWAN KUMAR KEDIA (Querist)
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14 May 2016 The description of work is construction of 200 mm diameter tubewell supply and installation of submersible pump sets and commissioning of tube well with 5 year defect liability in rural area . This work is awarded by Government and its use is non commercial. The work basically involve deep drilling with machine and then lowering of casing pipe, delivery pipe, cable and submersible pump, fitting and installation of electric penal and commissioning of tubewell for water supply. It is a public utility work. . It is a composite work of drilling, supply and installation of pipe, motor and commissioning thereof. Whether this work is liable for service tax ? if it is liable to service tax then under which category under which clause it falls? If it is exempt then under which clause it is exempt? What is the position in 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16? Please guide. Also Provide relevant case laws.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 May 2016 The above work is exempted from service tax all these years. See para 12 (e) of mega exemption notification 25/2012 ST.

PAWAN KUMAR KEDIA

PAWAN KUMAR KEDIA (Querist)
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14 May 2016 Sir clause 12(e) read as - pipe line, conduit or plant for (i) water supply, (ii) water treatment or (iii) water sewerage treatment or disposal: or.
Sir in which term it falls, whether in pipe line or conduit or plant. Sir the Mega Exemption is from 01.07.12 and what will be the position from 01.04.11 to 30.06.12. Is there any case law . Department is intending to cover it either in erection, installation or commissioning service or in works contract service.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 May 2016 It will fall under Plant for (1) water supply. It can't be covered under erection and commissioning see the Tribunal decision in the case of Indian Hume Pipe Co. Ltd v. CCE(2008) 16 STT 136 (Chennai CESTAT) and in the case of Lalit constructions v.Commissioner of Central Excise Raigad Feb 23,2012(Cestat Mumbai bench).

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