The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that works contract service for drainage and sewerage pipelines construction Municipal Corporation is non-commercial activity, no Service tax attracts
Shri Jigar Shah, Advocate, Shri Rahul Patel, CA appeared for the Appellant and Shri. Vinod Lukose, Superintendent (Authorized Representative) appeared for the Respondent.
N P Patel & Co, the appellant are engaged in the business of infrastructural and construction business. Intelligence was gathered by the revenue authorities and search was conducted at the premises of the Appellant.
It was contended that the demand for service tax under the taxable category of works contract service for drainage and sewerage pipeline construction for Ahmedabad Municipal Corporation and Ahmedabad Urban Development Authority is not sustainable as it is non-commercial in nature. Within the definition of works contract services, there are specific exclusions provided
It was observed that Notification No. 17/2005 –S.T. dated 07.06.2005 exempts Site Formation and clearance, excavation and demolition and other similar activities carried out in the course of construction of roads, Airports, Railways, terminals, bridges, tunnels, dams, ports or other ports etc. from the levy of service tax. In respect of other services also appellant claims the service tax exemption.
The CESTAT bench consisting of Mr Ramesh Nair, member (judicial), and Mr Raju, member (technical) has viewed that in the impugned matter as regards the exemptions appellant also not produced their claim properly before the adjudicating authority with supporting documents and the Commissioner has also not examined the claim of appellant properly.
The bench set aside the impugned order and remanded the case back to the adjudicating authority for consideration of all the issues. The appeal was allowed by way of remand to the Adjudicating Authority.
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