Service Tax Exemption for Non-Commercial Govt Buildings: CESTAT Remands Matter for Fresh Verification of Documents Under Notification [Read Order]
The appellate tribunal held that the original adjudicating authority must be allowed to verify the evidence and pass a reasoned order. Therefore the matter was remanded.
The New Delhi bench of Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has remanded service tax matter related to works executed in non-commercial government buildings for submission of evidence.
M/s Shubham Electricals, a proprietorship concern, was registered with the Service Tax Department and engaged in providing Works Contract Services.
During an enquiry by the Anti-Evasion Branch, the Department alleged that the appellant had provided taxable services in relation to projects such as the Commonwealth Games, and also rendered services like erection, commissioning and installation, along with maintenance and repair services to various clients, without proper registration under those categories and without payment of service tax.
Earlier, a show cause notice dated 21.10.2011 covering the period 2006 07 to 2010-11 had been issued and confirmed by the adjudicating authority. However, the Commissioner (Appeals) later dropped this demand. The Revenue did not challenge that portion.
Later, the Department issued further show cause notices dated, for later periods, mainly covering the phase after 01.07.2012, when the service tax regime shifted to the negative list-based taxation system.
For the period after 01.07.2012, the appellant argued that its services were exempt under Entry 12(a), 12(c) and 12(f) of Notification No. 25/2012-ST dated 20.06.2012.
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This exemption covers construction/installation/repair/maintenance etc. provided to the Government, local authority, or governmental authority in respect of structures meant predominantly for non-commercial use, including educational, clinical, cultural establishments and residential complexes for self-use, submitted the appellant.
Before the bench of Binu Tamta (Judicial member) and P.V. Subba Rao(Technical member), the appellant stated that it possessed all relevant documents proving eligibility under Notification No. 25/2012-ST, and that these documents were already placed in the appeal paperback.
According to the appellant, the lower authorities did not get an opportunity to examine these documents now presented.
Therefore, the appellate tribunal held that the original adjudicating authority must be allowed to verify the evidence and pass a reasoned order.
Accordingly, CESTAT allowed the appeals by way of remand, sending the matter back to the Additional Commissioner with directions to give the appellant a proper opportunity to present evidence, and pass an appropriate order.
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