By TIOL News Service

BANGALORE, DEC 19, 2014: A battery of eminent lawyers and specially flown in ARs from Delhi CESTAT, were battling it out for the past five days before the Larger Bench of the CESTAT headed by the President. The issue was whether the host of irrigation projects undertaken by the AP Government through various contractors are liable to service tax as "Turnkey projects/ EPC Projects" under works contract service.

It all started with the (in)famous decision of the Division bench of the Hon'ble Tribunal in Ramky Infrastructure (2012-TIOL-613-CESTAT-BANG), where it was held that they are taxable. What followed was a spate of pre deposit directions, beeline by parties to High Court/Supreme Court. Finally, the Supreme Court ordered that a Special Bench headed by the President of the CESTAT shall decide the batch of appeals.Nearly 80 appeals involving hundreds of crores were at stake.

The packed courtroom filled with top lawyers of the country, with tons of records and books, with assistants and assessees witnessed the height of interpretative skills at its best, interluded by the President's quotable quotes (like treatment of Ebola by an RMP).

The main issues raised were,

(i) whether the exclusion under works contract service, "in respect of dam" would cover the canals and pipelines, which are essential to achieve the objetive of the dam;

(ii) whether clause (b) or clause (e) of works contract service (zzzza explanation ii) would have precedence in classification;

(iii) whether clause (e) is only an ex abundanti cautela provision; etc.

The Larger Bench has reserved its order today, on conclusion of arguments.