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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, BANGALORE
M. VEERAIYAN, P.G. CHACKO, JJ.
Ramky Infrastructure Ltd. V. Satya Murthy Joint Venture -Appellant
Versus
Commissioner of Service-tax, Hyderabad -Respondent
FINAL ORDER NOS. 299 TO 301 OF 2012 STAY ORDER NO. 77 OF 2012 APPEAL NOS. ST/476 OF 2009, 432 & ST/476 OF 2009, 432
Decided On : 14-05-2012
G. Shivadass, G. Natarajan,R.K. Singla, P.R.V. Ramanan
P.G. Chacko, Judicial Member - The appeals, ST/476/2009 and ST/1589/2010, were filed by M/s. Ramky Infrastructure Ltd. - V. Satya Murthy Joint Venture (hereinafter referred to as Ramky-Murthy JV) and the third appeal, ST/432/2010, was filed by M/s. Maytas Infra Ltd.-Nagarjuna Construction Company Ltd. Joint Venture (hereinafter referred to as Maytas- NCC JV). All the three appeals are directed principally against demands of service tax under the head "Works Contract Service" confirmed against them by the Commissioner in adjudication of the relevant show-cause notices covering various periods as shown below:-
| Appeal No. | Date of SCN | Period of dispute | OIO No. & date | S. Tax + Education Cess | Penalty imposed u/s 76 | Penalty imposed u/s 77 | Penalty imposed u/s 78 |
| ST/476/2009 | 24/10/2008 | June 2007 to May 2008 | No.14/2009-ST dt. 17/2/2009 | Rs.2,79,12,913/- | @2% of service tax per month | Rs. 1000/- | Rs.2.8 crores |
| ST/1589/2010 | 25/08/2009 | June 2008 to March 2009 | No.15/2010-ST dt. 29/3/2010 | Rs.2,57,97,663/- | @2% of service tax per month | Rs. 5000/- | --- |
| ST/432/2010 | 18/06/2009 | June 2007 to Sept 2008 | No.51/2009-ST dt. 30/11/2009 | Rs.13,46,28,909/- | @2% of service tax per month | Rs. 1000/- | Rs.14 crores |
2. Facts of appeal No.ST/476/2009
2.1 From the results of investigations into the works undertaken by the appellant in execution of certain contracts awarded by the Irrigation & Command Area Development (CAD) Department, Govt. of Andhra Pradesh, it appeared to the Anti-Evasion Wing of the Commissionerate of Service Tax, Hyderabad-II that the appellant was providing to the State Government "works contract service" (WCS) in terms of Section 65(105)(zzzza) of the Finance Act, 1994 during the period from 01/06/2007 to 31/05/2008. It was found that six EPC contracts had been executed by the appellant for the Irrigation & CAD Department of the State Government during the said period. The relevant particulars including the description/scope of the work, as gathered by the service tax authorities, are as stated hereunder:
| Name of the contractee: Irrigation & CAD Dept., Government of Andhra Pradesh, represented by the Superintending Engineer concerned: | |||||
| Sl. No. | Brief title of contract | Type of project as per the agreement/contract documents | Agreement No. | Date | Contract value (Rs. In crores) |
| 1 | SRSP Stage-II Package No.56 - Km 0.00 to 32.00 Tirumalagiri (v&m), Nalgonda Dist. | Turnkey Contract | 62/04-05 | 06/03/2005 | 72.00 |
| Description/scope of work : Earth Work excavation, forming embankment and distributor system including Distributories, Majors, Minors, Sub-Minors and Field channels from Km 0.00 to 32.00 on DBM (i.e. 1R to 22L) on DBM-71 of SRSP Stage-II, Tirumalagiri (v&m), Nalgonda District. | |||||
| 2 | SRSP Stage-II Package No.57 - Km. 32.00 to 40.00, Suryapet Mandal, Nalgonda Dist. | Turnkey Contract | 63/04-05 | 06/03/2005 | 55.35 |
| Description/scope of work : Earth work excavation, forming embankment and construction of CM & CD works including investigation, designing and estimation of Distributory System including distributories, Majors, Minors, Sub-Minors and Field channels from Km 32.00 to Km 40.00 (i.e. 23R to 37L) on DBM-71 of SRSP - State-II, Suryapet Mandal, Nalgonda District. | |||||
| 3 | HNSS (Handri Neeva Sujala Sravanthi) Phase-II Package No.4 (Km 260.00 to Km 280.00) | EPC Turnkey System | SHE 5 EPC/2006-07 | 15/12/2006 | 60.41 |
| Description/scope of work : Investigation, preparation of Hydraulic particulars, designs, drawings and each work excavation of HNSS main canal reach from Km 260.00 to Km 280.00 an | |||||
