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2018 (9) TMI 91 - AT - Service TaxCommercial or Industrial Construction Service - Construction services or not? - embedding of interlocking bricks at the site of the customers for laying of internal roads and approach roads to the compound of the building on labour basis as per Section 65(105)(zzq) - Department alleged that the appellants are providing construction services during the period September 2004 to November 2005 - CBEC vide Circular No.B1/6/2005-TRU dated 27.2.2005 - Held that:- Construction of roads if undertaken as a part of contract for construction of a commercial complex or industrial building, is taxable. In the instant case, the appellants have not undertaken any such activity and their contract with their buyers was limited to laying of interlocking paver blocks and the approach roads. Therefore, the findings of the impugned order appear to be beyond the scope of provisions of law and the Circular issued. The Tribunal in the case of Shilpa Construction Pvt. Ltd. [2010 (6) TMI 175 - CESTAT, AHMEDABAD] has held that If the contract recognizes the two activities as separate activities, even though the construction of the road is in connection with the commercial complex, the benefit has to be allowed. As such the fact whether the road is being constructed for public utility purpose or as a part of a commercial complex is not relevant. Appeal allowed - decided in favor of appellant.
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