Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 1398 - AT - Service TaxWorks contract service - commercial or industrial construction - sub-contract - construction of roads - construction activities undertaken on behalf of M/s Larsen & Toubro - whether the demand of service tax under the head Works contract service and commercial or industrial construction service justified? Held that:- It can be seen that the construction of road and activities in relation to construction of road are exempted from the scope of levy of service tax - the activities of the appellant which are in relation to construction of road and highway projects are beyond the scope of levy of service tax by the virtue of exclusions added in the definition of both the service tax categories namely commercial or industrial construction as well as the work contract service. This Tribunal in its judgment in the case of Ideal Road Builders Pvt. Ltd. vs. CST, Mumbai [2013 (1) TMI 522 - CESTAT MUMBAI] has held that construction of roads has specifically been excluded from the scope of the service tax levy both under commercial or industrial construction service and work contract service. Further repairs and maintenance of roads have also been exempted from service tax retrospectively thus the intention of the Government is to keep out road construction activity from the purview of service tax. The exclusion clause for activities regarding construction in relation to road also covers the type of the activities undertaken by the appellant - the service tax is not leviable on the sub-contractor activities undertaken by the appellant for construction of roads - appeal allowed - decided in favor of appellant.
|