Commissioner Of Kolkata South CGST & Cx, Kolkata vs. Electrosteel Castings LTD.

Facts

The appeal was filed by the Commissioner of Kolkata South CGST & CX, Kolkata, against Electrosteels Castings Ltd. The appeal was filed beyond the prescribed limitation period by 122 days, with a delay condonation application (IA NO.GA/1/2018). The High Court, with the consent of both parties, condoned the delay and allowed the application. The appeal challenges an order dated 20th March, 2017, passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Eastern Regional Bench, Kolkata, in ST Appeal No. 73/2009. The CESTAT had made specific findings regarding the respondent's activities.

Held

The Court held that the findings recorded by the CESTAT were based on relevant evidence on record. Specifically, the CESTAT had found that the respondent was not selling water but was executing a water supply project for the Government of Gujarat to provide water to humans and animals. Consequently, the CESTAT concluded that there was no element of commercial activity or rendition of service in providing water. The High Court agreed with the CESTAT's findings, stating that no substantial question of law was involved in the appeal. Therefore, the appeal was dismissed.

Key Issues

1. Whether the CESTAT erred in holding that the respondent's activity of providing water was not a commercial activity or rendition of service, thereby not exigible to service tax? This question turns on the interpretation of provisions related to taxable services under the Finance Act, 1994 (though not explicitly named, the context of service tax implies this). The appellant argued that the CESTAT's findings were erroneous. The respondent argued that they were not selling water but executing a water supply project for the Government of Gujarat, for the benefit of humans and animals, and thus, there was no element of commercial activity or rendition of service. The respondent relied on the CESTAT's findings based on relevant evidence.