IN THE HIGH COURT OF KARNATAKA AT BANGALORE BEFORE THE HON BLE MR.JUSTICE H.G.RAMESH. WRIT PETITION No.34337/2011 (T-RES)

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1 - 1 - IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 16 TH DAY OF OCTOBER 2012 BETWEEN: BEFORE THE HON BLE MR.JUSTICE H.G.RAMESH WRIT PETITION No.34337/2011 (T-RES) M/S. BANGALORE METRO RAIL CORPORATION LIMITED (A JOINT VENURE OF GOVT. OF INDIA AND GOVT. OF KARNATAKA) 3 RD FLOOR, BMTC COMPLEX K H ROAD, SHANTINAGAR BANGALORE , KARNATAKA MR N SIVASAILAM MANAGING DIRECTOR.... PETITIONER (BY SRI K.S. RAVI SHANKAR, ADVOCATE) AND : 1 THE MINISTRY OF FINANCE GOVERNMENT OF INDIA REP BY ITS SECRETARY MF (DR) SHRI SUNIL MITRA NEW DELHI THE CENTRAL BOARD OF EXCISE AND CUSTOMS NORTH BLOCK, RASHTRAPATI BHAWAN DEFENCE HEAD QUARTERS MR S D MAJUMDER CHAIRMAN, NEW DELHI THE COMMISSIONER OF SERVICE TAX NO.16/1, S P COMPLEX LALBAGH ROAD REP BY MR R K SINGLA BANGALORE

2 - 2-4 M/S RITES LTD (A PUBLIC SECTOR UNDERTAKING UNDER THE MINISTRY OF RAILWAYS, GOI) NEW DELHI HOUSE, 27, BARAKHAMBA ROAD NEW DELHI A N RAJAGOPALAN CHIEF FINANCIAL ADVISER 5 THE MINISTRY OF RAILWAYS 459-A, RAIL BHAWAN, RAFI MARG DELHI MR VIVEK SAHAI THE CHAIRMAN OF RAILWAY BOARD 6 ALSTOM PROJECTS INDIA LTD DODDANAKUNDI 27 TH KM BELLARY ROAD DODDANAKUNDI, BANGALORE SHRI DINESH BOHRA 7 ITD-ITD CEM JOINT VENTURE SURVEY NO.10, BANNEGNAHALLI OLD MADRAS ROAD, OPP CDAC (NGEF) BANGALORE SHRI ANIWATTANANNAN SUTHOD 8 THALES PORTUGAL SA NO.65/2, BAGMANE TECH PARK C V RAMAN NAGAR BYRASANDRA, BANGALORE SHRI ANTONIO PINHAO 9 TATA ELXSI LTD ITPB ROAD, WHITE ROAD BANGALORE SHRI MADHUKAR DEV MANAGER DIRECTOR

3 SDS-KALINDEE RAIL NIRMAN (ENGINEERS) LTD BEHIND BIAPPANAHALLI DEPOT BAIYAPPANAHALLI, BANGALORE SHRI HIMANSHU PANDA 11 SCHINDLER INDIA PVT LTD 2 ND FLOOR, DOOR NO.814 (OLD NO.419) 14 TH CROSS, SHASTRINAGAR K R ROAD, BANGALORE SHRI VINAY TUTEJA BRANCH MANAGER 12 PARSONS BRINCKERHOFF INTERNATIONAL INC (PBI) 3 RD FLOOR, VAISHANAVI BADRI 48, 5 TH MAIN, JAYAMAHAL EXTENSION BANGALORE SHRI MILIND NIRMAL PRINCIPAL - IN - CHARGE 13 ORIENTAL CONSULTANTS COMPANY LTD , NARAIN MAZIL 23, BARAKAHMABA ROAD NEW DELHI SHRI KAMAL SACHDEVA REPRESENTATIVE OF OC 14 RITES LTD 3 RD FLOOR, BMTC COMPLEX K H ROAD, SHANTHINAGAR BANGALORE SHRI VENKADA SWAMY DEPUTY PROJECT DIRECTOR 15 SPAN CONSULTANTS PVT LTD A V TOWERS, II FLOOR MYSORE ROAD, BANGALORE SHRI S SENGUPTA, DEPUTY CEO

4 MOTT MACDONALD PVT LTD 2 ND FLOOR AL-LATHEEF NO.2 UNION STREET OFF INFANTRY ROAD BANGALORE MRS ANINDITA DAS 17 S N BHOBE & ASSOCIATES PVT LTD 55, 1 ST MAIN, RMV II STAGE NEW BEL ROAD BANGALORE SHRI UTPAL CHAKRAVARTY VICE PRESIDENT 18 SREI-TUV-DBI CONSORTIUM D-2, SOUTHERN PARK 5 TH FLOOR, SAKET PLACE, NEW DELHI DR RATIRANJAN MANDAL CEO-SREI INFRASTRUCTURE FINANCE LTD 19 STUP CONSULTANTS PVT LTD A-1 TOWER, 5 TH & 6 TH FLOOR GOLDEN ENCLAVE HAL AIRPORT ROAD BANGALORE SHRI SAMUEL A T, DIRECTOR 20 WILLIS INDIA INSURANCE BROKERS PVT LTD CROWN POINT 1 ST FLOOR, NO.36 LAVELLE ROAD KASTURBA ROAD CROSS BANGALORE SHRI SATHYAPRAKASH S VICE PRESIDENT, KARNATAKA REGION 21 CIVIL AID TECHNOCLINIC PVT LTD #1030, 13 TH CROSS BANASHANKARI 2 ND STAGE

5 - 5 - BANGALORE DR C S VISHWANATHA CHAIRMAN 22 HYUNDAI ROTEM 231, YANGJAE-DONG SEOCHO-GU SEOUL , KOREA DR S W CHO PROJECT DIRECTOR 23 MITSUBISHI CORPORATION MARUNOUCHI PARK BUILDING 6-1 MARUNOUCHI 2-CHOME, CHIYODA-KU TOKYO , JAPAN MR AKIRA ONOE PROJECT DIRECTOR 24 MITSUBHISHI ELECTRIC CORPORATION 2-7-3, MARUNOUCHI CHIYODA-KU TOKYO JAPAN MR TAKAYUKI OGAWA PROJECT DIRECTOR 25 BINYAS CONTECH LTD NO.200, CBI ROAD, GANGANAGAR BANGALORE MR NIRANJAN 26 SAI RETRO FABS NO.393, GROUND FLOOR Deleted vide Court 28 TH MAIN order dated SECTOR-I, HSR LAYOUT BANGALORE MR ANAND MANAGING DIRECTOR 27 CEC-SOMA-CICI JV 601, PHOENIX TOWERS NO.16, MUSEUM ROAD BANGALORE

6 - 6 - MR ANDREW LEISK COMMERCIAL MANAGER 28 K P PADMANABHA & ASOCIATES 4C, BHARAT APARTMENTS Deleted vide Court 44/1, A & B order dated FAIRFIELD LAYOUT BANGALORE MR SUKEN PADMANABHA PROPRIETOR.... RESPONDENTS (BY SRI ANIYAN JOSEPH, CGSC FOR R-1; SMT.C.GEETHA, ADVOCATE FOR SRI N.R.BHASKAR, SENIOR CGHC FOR R-2 & R-3; SRI S.VENKATESH AITHAL, ADVOCATE FOR R-7; SMT. LAKSHMI KUMARAN, ADVOCATE AND SRI SRIDHARAN, ADVOCATE FOR R-6 & R-19; SRI SUDEV HEGDE, ADVOCATE FOR R-21; SMT. DHIVYA MENON, ADVOCATE FOR DSK LEGAL ASSOCIATES, ADVOCATES FOR R-23 & R-24; SRI V.K.NARAYANA SWAMY, ADVOCATE FOR R-5; SRI P.M.VASUDEV & CO., ADVOCATES FOR R-9; SRI C.R.RAGHAVENDRA, ADVOCATE FOR R-26; SRI S.RAJENDRA, ADVOCATE FOR R-11; SRI T.S.VENKATESH, ADVOCATE FOR R-4 & R-14; R-26 & R-28 ARE DELETED; R-8, R-10, R-12, R-13, R-15, R-16, R-17, R-18, R-20, R-22 R-25 AND R-27 ARE SERVED AND UNREPRESENTED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED DIRECTION/COMMUNICTION IN ANNEXURE- H DATED AND PROHIBIT R3 AND HIS SUPERIORS AND R-4 TO R-28 (WHO ARE PERFORMING SERVICES IN RESPECT OF AND IN RELATION TO THE WORKS CONNECTED WITH THE BANGALORE METRO RAIL PROJECT OF THE PETITIONER) FROM LEVYING AND COLLECTING SERVICE TAX ON AND FROM THE PETITIONER. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN `B GROUP THIS DAY, THE COURT MADE THE FOLLOWING:

7 - 7 - H.G.RAMESH, J. (Oral): O R D E R M/s Bangalore Metro Rail Corporation Ltd. is the petitioner in this writ petition. Learned Counsel appearing for the petitioner submits that the writ petition may be disposed of by clarifying the legal position that services rendered in relation to the execution of a works contract in respect of Railways is not taxable under Section 66 of the Finance Act, 1994 ( the Act for short). I find no legal impediment to clarify the legal position. It is relevant to refer to the following provisions of the Act: Section 65. Definitions In this Chapter, unless the context otherwise requires,- (1)... (105) taxable service means any service provided or to be provided,

8 (zzzza) to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams. Explanation: For the purposes of this subclause, works contract means a contract wherein, (i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and (ii) such contract is for the purposes of carrying out, (a) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire

9 - 9 - proofing or water proofing, lift and escalator, fire escape staircases or elevators; or (b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or (c) construction of a new residential complex or a part thereof; or (d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or (e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects; (zzzzb).. Section 66. Charge of service tax There shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve per cent of the value of taxable services referred to in sub-clauses (a), (d), (e), (f), (g), (h), (i), (j), (k),(l), (m), (n) (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (za), (zb), (zc), (zh), (zi), (zj), (zk),

10 (zl), (zm), (zn), (zo), (zq), (zr), (zs), (zt), (zu), (zv), (zw), (zx), (zy), (zz), (zza), (zzb), (zzc), (zzd), (zze), (zzf), (zzg), (zzh), (zzi), (zzk), (zzl), (zzm), (zzn), (zzo), (zzp), (zzq), (zzr), (zzs), (zzt), (zzu), (zzv), (zzw), (zzx), (zzy), (zzz), (zzza), (zzzb), (zzzc), (zzzd), (zzze), (zzzf), (zzzg), (zzzh), (zzzi), (zzzj), (zzzk), (zzzl), (zzzm), (zzzn), (zzzo), (zzzp), (zzzq), (zzzr), (zzzs), (zzzt), (zzzu), (zzzv), (zzzw), (zzzx), (zzzy), (zzzz), (zzzza), (zzzzb), (zzzzc), (zzzzd), (zzzze), (zzzzf), (zzzzg), (zzzzh), (zzzzi), (zzzzj), (zzzzk), (zzzzl), (zzzzm), (zzzzn), (zzzzo), (zzzzp), (zzzzq), (zzzzr), (zzzzs), (zzzzt), (zzzzu), (zzzzv) and (zzzzw) of clause (105) of section 65 and collected in such manner as may be prescribed. (Emphasis supplied) A reading of the above provisions would show that any service rendered in relation to the execution of a works contract in respect of Railways which is excluded under clause (zzzza) referred to above will fall outside the definition of taxable service and consequently no service tax shall be leviable under

11 Section 66 of the Act on the value of such services. With this clarification, the writ petition stands disposed of. Petition disposed of. *bk/ata. Sd/- JUDGE

National Seas Act 1977, Act No. 7 of 7 February 1977 PART I PRELIMINARY

Page 1 National Seas Act 1977, Act No. 7 of 7 February 1977... PART I PRELIMINARY Interpretation 1. (1) In this act, unless the contrary interpretation appears: "baseline" means territorial sea baseline;