The Allahabad bench of the Customs Excise & Service Tax Appellate Tribunal ( CESTAT ) held that no service tax for the construction of slaughterhouse for the municipal corporations. The CESTAT observed that there are no records to show that the said slaughterhouse was for commerce and industry.
The appellant Revenue challenged the impugned order Commissioner ( Appeals ) which has set aside the Order-in-Original. M/s Meatek Food & Machineries India Pvt. Ltd., the respondent has undertaken the work of Design & Engineering, Land & Site Development & Civil works etc. for the construction of a slaughterhouse for Kolkata Municipal Corporation.
The revenue contended that the said activity should have been subjected to service tax. Accordingly, a show cause notice dated 21.12.2016 was issued to the Respondent demanding service tax and penalty.
It was observed that Entry at Serial No 12 (a) of the Mega Exemption Notification No.25/2012-ST dated 20.06.2012, exempts the Services provided to the Government, a local authority or a governmental authority, as specified in clause (a), (b) …. etc have been exempt from the payment of service tax
A two-member bench comprising P K Choudhary, Member ( Judicial ) and Sanjiv Srivastava, Member ( Technical ) observed that the slaughterhouse was established for Kolkata Municipal Corporation in terms of Article 243W read with Schedule 12th of the Constitution of India.
The CESTAT observed that there are no records to show that the said slaughterhouse was for commerce and industry. On the contrary in terms of Article 243W, this was the responsibility of the municipal corporation. That being so, the Appellant is entitled to benefit of Sr. No.12(a) of Mega Exemption Notification No.25/2012-ST dated 20.06.2012.
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