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2018 (5) TMI 487 - AT - Service TaxCommercial or industrial construction service - charitable trust - Whether the service provided for construction of hospital which is run by the trust is liable to service tax under ‘commercial or industrial construction'? - Board circular dated 17/09/2004 - Held that: - from the Circular, it is very clear that the building of civil construction which are fully used by charitable organisation for the purpose of providing treatment not taxable being non-commercial ventures - construction of a building for use as hospital by a charitable organization does not fall under the category of ‘commercial or industrial construction’. - demand set aside. Whether the GTA service provided for construction of building for Tata Consultancy Service located in SEZ is liable for service tax? - clause (e) of Section 26(1) of SEZ Act, 2005 - Held that: - the taxable service provided to the developer or unit to carry on the authorised operation under the SEZ is exempted - In the present case the service of GTA is admittedly provided for construction of building in the SEZ. Therefore, the said service is exempted - demand set aside. Whether the GTA service availed in connection with the construction of hospital is liable to service tax? - time limitation - Held that: - In the present case, the GTA service is used by the appellant and the appellant is the deemed service provider. Hence the GTA service is integral to construction of hospital building. Therefore, the GTA service relating to construction of hospital is taxable in the hands of the appellant - the appellant have not disclosed the transaction of GTA to the department as no ST-3 returns were filed declaring the value of GTA service to the department. Therefore, extended period in respect of show cause notice dated 31/12/2012 is rightly invoked - As regard the show cause notice dated 14/10/2013 we agree with the submissions of Learned Counsel that once the department came to know about the activity of the appellant and a show cause notice was issued then in the subsequent show cause notice invocation of extended period is not available to the department - demand relating to show cause notice dated 14/10/2013 for the extended period i.e. for April 2011 to September 2011 is time-barred. The penalty commensurate to the demand of GTA relating to the hospital is maintained along with interest. Appeal allowed in part.
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