Affixing chairs in Stadiums not chargeable to Tax as Activity not of Commercial Nature: CESTAT [Read Order]

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi held that affixing chairs in stadiums is not chargeable to tax as an activity, not of commercial nature.

The appeal has been filed by M/s Shiv Naresh Sports Pvt. Ltd. against the rejection of refund claims filed by the appellant. The appellant had provided certain services to various recipients. The appellant had paid service tax in the category of erection, commissioning, and installation services.

The Counsel for the appellant, R K Philips has relied on the decision of the Tribunal in the case of B.G. Shirke Construction Technology Pvt. Ltd. In said decision, it has been held that the services provided for the sports facilities owned by State would not be chargeable to tax under commercial or industrial construction services.

The Counsel for the respondent, Radhe Tallo pointed out that the appellant has classified the service as erection, commissioning, and installation service. He pointed out that there is no exemption to the services in relation to non-commercial structures in case of erection, commissioning, and installation services and further pointed out that the refund claim of the appellant is hit by the clause of unjust enrichment as well as on account of limitation

The bench consisting of Justice Dilip Gupta, President, and Raju, Technical Member observed that “The activity undertaken in a stadium, which belongs to Government and is used for non-commercial activities, would not be covered under the definition of CCIS as held by Tribunal in the case of B.G. Shirke Construction Technology Pvt. Ltd. In view of the above, it is apparent that the activity of affixing chairs in a stadium would be covered under the description of service covered under commercial or industrial construction service, but not chargeable to tax for the reason that the structure for which the said activity has been undertaken is not of commercial nature.

To Read the full text of the Order CLICK HERE

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