Supply of pipes to Water Supply Project - exemption not restricted to the first storage point; available to subsequent points – Another favourite litigation point
Water has been a source for litigation and even wars. The Government in its wisdom chose to exempt pipes used in water supply projects. Revenue insists that this exemption is for pipes available to first stage of storage only.
Every Municipality undertaking some drinking water project is stuck with this dispute. The Tribunal in the case of IVRCL Infrastructures & Projects Ltd – had held that the exemption cannot be restricted to the first storage point. The Kolkata bench of the Tribunal had taken a similar decision in the case of Electro steel in 2009-TIOL-1880-CESTAT-KOL. In both the cases, Revenue had taken the matter in appeal to the Supreme Court and in both the cases the Supreme Court had dismissed the Revenue Appeal.
This is yet another case, where Revenue should put a full stop. As they have lost in the Supreme Court, they should honourably concede and withdraw all those Show Cause Notices and pending cases.