TMI Blog2017 (5) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... eaker section under works allotted by the Varanasi Development Authority under the scheme of Government of U.P., the activities is neither taxable under works contract services nor under Construction of Complex/Commercial or Industrial Construction Services more particularly under the exclusion clause which provides that construction classifiable under the category of residential complex service does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person and personal use have been further explained as including or permitting the complex for use as residence by another perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roller, Varanasi Development Authority, who furnished the desired information to the Revenue. It appeared to Revenue that the assessee-respondent have rendered services to Varanasi Development Authority under the category of Work Contract Service . The respondent is constructing civil structures, new building or a civil structure or a part thereof as per the contract of Varanasi Development Authority and have received payment for the same. Accordingly, the respondent is liable to pay Service Tax on such receipt from Varanasi Development Authority. Accordingly, Service Tax of ₹ 34,02,716/-was demanded and proposed to be recovered from the extended period i.e. 2007-08 to 2011-12. Further penalty was also imposed under Sections 70, 76, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that the appellant has constructed 12 flats or residential units in each building or buildings. It was also stated that the flats were given to economically weaker sections and not for profit. All such activities were performed by the Sovereign/Public Authority i.e. Varanasi Development Authority under the provisions of law in the nature of statutory obligations in compliance of the policy of the Government of Uttar Pradesh. Such activity is purely in public interest. It has also been observed that the flats are allotted to the persons of economically weaker sections on lease basis and ownership remains with the Government. Accordingly, it was held that no Service Tax is payable under the category of Work Contract Service. 3. Being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and finishing services of new residential complex or partly thereof under Jawaharlal Nehru Urban Renewal Mission and Rajiv Awas Yojana, from the whole of the Service Tax leviable thereon. It is contended by the Revenue that there is no specific exemption given to the Government of U.P. for Manyavar Kanshi Ram Saheri Garib Avas Yojna. It is further contended that activity of constructing houses for economically weaker sections for Varanasi Development Authority is taxable under the category Works Contract Service . 4. Heard the parties. 5. We find that the issue in itself is incorrect. Larger Bench of this Tribunal in the case of Lanco Infratech Ltd. vs. CC, CE ST - (2015) 38 STR 709 (Tri. - LB) has held that such activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial and industrial construction. We also agree with finding of learned Commissioner (Appeals) holding that the activity for constructing houses by the appellant for economically weaker section under works allotted by the Varanasi Development Authority under the scheme of Government of U.P., the activities is neither taxable under works contract services nor under Construction of Complex/Commercial or Industrial Construction Services more particularly under the exclusion clause which provides that construction classifiable under the category of residential complex service does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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