The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) no service tax is leviable on the construction of a residential complex for a state police housing corporation.
Ample Construction Company, the appellant questioned, whether the appellant is liable to service tax on the service of construction of residential complex for Gujarat State Police Housing Corporation.
Shri PV Sheth, Counsel appeared on behalf of the appellant at the outset submitted that the issue is no longer res-integra as in the various judgments, this Tribunal has held that construction of a residential complex for Gujarat State Police Housing Corporation is not liable to service tax.
Shri Rajesh K Agarwal, Superintendent (AR) appeared on behalf of the Revenue and reiterated the findings of the impugned order.
In many cases, the Tribunal observed that the service provided by the appellant is to establishments and organizations which are of non-commercial or non-industrial nature and therefore, the construction, renovation, and repair work undertaken by them falls under the exclusion of the definition of ‘Commercial or Industrial Construction Service’. The bench held that the appellants are not liable to pay any service tax on such activity.
The two-member bench comprising Mr Ramesh Nair, Member (Judicial) and Mr C L Mahar, Member (Technical) held that the construction of the residential complex for State Police Housing Corporation was held to be non-taxable. Considering the above decision, demand in the present case is not sustainable. Accordingly, the impugned order is set aside and the appeal is allowed.
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