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2018 (12) TMI 792 - AT - Service TaxClassification of services - Works Contract Services or not - Mega Exemption Notification No.25/2012-ST dated 20.06.2012 - Circular No.80/10/2004-TRU dated 17.09.2004 - Held that - Board Circular supports the assessee s case and it is well settled law that revenue cannot go against the Board Circular. Circular No.80/10/2004-TRU dated 17.09.2004 has observed that from the definition of work contract, it is very much clear that completion and finishing services, repair, alternation, renovation or restoration of, or similar services, in relation to construction of a new building or a civil structure or a part thereof, or of pipeline or conduit, primarily for the purposes of commerce or industry is within the purpose of tax. Appeal dismissed - decided against Revenue.
Issues:
1. Classification of services under Works Contract Service for the period till 30.06.2012 and exemption under Mega Exemption Notification No.25/2012-ST dated 20.06.2012. 2. Exemption from service tax for construction activities undertaken for IIT and CPWD. 3. Interpretation of government authority and exemption under Notification No.25/2012-ST dated 20.06.2012 for services provided to IIT and CPWD. 4. Applicability of Circular No.80/10/2004-TRU dated 17.09.2004 and the decision in the case of M/s Shapoorji Paloonji & Company (P) Ltd. Vs Commissioner of Customs, Central Excise & Service Tax. Analysis: 1. The respondent was registered for Works Contract Service and provided services to IIT, Kanpur and CPWD. The Department demanded service tax based on the classification of services under Works Contract Service. The respondent claimed exemption under Mega Exemption Notification No.25/2012-ST dated 20.06.2012. The Commissioner (Appeals) relied on Circular No.80/10/2004-TRU and held that services not primarily for commerce or industry are exempt from service tax till 30.06.2012. The Appellate Authority upheld this decision, stating that services provided to IIT and CPWD did not fall under the purview of service tax for the mentioned period. 2. The Appellate Authority further examined the exemption for construction activities post 01.07.2012 for IIT and CPWD. It determined that construction activities for IIT, Patna (set up by an Act of Parliament) and CPWD (a Central Government-owned authority) were exempt from service tax under Notification No.25/2012-ST dated 20.06.2012. The work orders for IIT, Kanpur and CPWD were found to be repair, maintenance, renovation, or alteration not primarily for commerce or industry, thus exempted from service tax under the notification. 3. The interpretation of government authority was crucial in determining the exemption for services provided to IIT and CPWD. The Appellate Authority considered CPWD as a government authority due to its ownership by the Central Government. For IIT, Patna, being set up by an Act of Parliament, it was also deemed a government authority. This classification played a significant role in granting exemption from service tax for the construction activities undertaken for these entities. 4. The decision in the case of M/s Shapoorji Paloonji & Company (P) Ltd. Vs Commissioner of Customs, Central Excise & Service Tax was cited by the Commissioner (Appeals) to support the exemption granted based on Circular No.80/10/2004-TRU. The Appellate Tribunal rejected the revenue's appeal, emphasizing that the Board Circular supported the assessee's case, and it is established that revenue cannot contest against the Board Circular. The Tribunal found no reason to interfere with the decision of the Commissioner (Appeals) based on the legal precedents and circulars referenced. This detailed analysis of the judgment provides insights into the classification of services, exemption criteria, interpretation of legal provisions, and reliance on legal precedents and circulars to arrive at the final decision in the case.
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