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2019 (3) TMI 1439 - CESTAT HYDERABADWorks contract service - Non/Short payment of service tax - various contracts executed by him under works contract services - rendering of service to Religious institutions - extended period of limitation - Held that:- In the case in hand, the issue of rendering of services to religious institutions, the period needs bifurcated pre and post 01.07.2012. There is no dispute as to the fact that appellant had constructed guest houses for the temples at Srisailam and Kanipakam. The said work order which is attached to the appeal memoranda indicates that the construction is for VIP guest houses at the temples. The adjudicating authority has come to a conclusion that the said services rendered by the appellant to the religious institutions claiming exemption is based on the nature of organisation for which construction services have been provided or the use of the building or the civil structure constructed by them and also focussed wrongly on the non-profit motive of such organisation. For the period post 01.07.2012, Mega-exemption Notification No 25/2012-ST dated 20.06.2012 at Sl No 13 (c) exempts the tax liability on a building owned by an entity registered under Section 12 AA of the Income Tax Act 1961 and meant predominantly for religious use by general public. This exemption clearly covers the case of the appellant post 01.07.2012 as it is undisputed that appellant is registered with the income tax authorities under Section 12AA as a charitable institutions for the period pre and post 01.07.2012. The exemption granted by Notification No 25/2012 ST (13) (c) would apply in full force. Accordingly, the demand of the service tax on the services rendered of works contract services to the religious institution does not survive and are liable to be set aside as we do so. Demand of service tax - buildings constructed for C-DAC, NFC and APHMHIDC - Held that:- The APHMHIDC has been stated to be engaged in creating infrastructure facilities of accommodation for medical institutions and quarters, and maintenance of hospital buildings, procurement and distribution of drugs, surgical and consumables and equipment and for storage of these items and that the said APHMHIDC is functioning as no profit and no loss basis. The said hand-out also specifically states that it is an enterprise of Govt of Andhra Pradesh. On perusal of the profile of NFC, it states that it has been established in the year 1971 as a major industrial unit of Department of Atomic Energy, Govt of India and the complex is responsible for supply of fuel and reactor core components for all the nuclear power reactors operating in India. The said NFC has been clearly indicated as a Unit of Department of Atomic energy, Govt of India. As regards the C-DAC, it is indicated in the profile of C-DAC that it is a premium R & D organisation of the Ministry of Electronics and Information Technology (MEIT) for carrying out R&D in IT, electronics, and associated areas - these buildings constructed by the appellant and the services rendered under works contract services are not taxable pre or post 01.07.2012. Service tax liability on the buildings constructed for ICFAI - Held that:- The issue is no more res integra as the Tribunal in the case of VIJ Construction Pvt Ltd Vs CCE New Delhi [2018 (4) TMI 598 - CESTAT NEW DELHI] was considering the very same issue of taxability of the services for construction of buildings for ICFAI and in paragraph No. 6 has held that in regard to campus for ICFAI University Dehradun, the buildings are for use of a recognised university for education and the same cannot be considered as commercial buildings. ICFAI University is having pan India presence, operating in various campuses, it has to be considered as an educational institution - the service tax liability on the construction of buildings for ICFAI Bangalore, Jaipur and Hyderabad for the period pre and post 01.07.2012 is unsustainable and liable to be set aside. Appeal allowed - decided in favor of appellant.
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