Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 808 - AT - Service TaxWorks Contract Services - composite contract - Body Corporate - services provided to Government Educational Institutions, Government Hospitals and other Government works and to Charitable Trust - benefit of N/N. 30/2012-ST dated 20.06.2012 at Sr. No. 9 - Construction of EWS Flats upto 31.03.2015 and the other services whether they have been provided to body corporate or not? HELD THAT:- For EWS Flats constructed by the appellant, the appellant is claiming the benefit under Sr. No. 12 (a) of the said notification. As per the said provision, if the said services provided to Government or local authority by way of construction meant predominantly for use other than for commerce, industry, or any other business or profession - Admittedly, these EWS Flats have been constructed by the appellant for Improvement Trust, Amritsar. The said flats were distributed by the Government among jhuggi jhopri residents at much below than the cost of construction. The said flats were not constructed for any commercial gain, therefore, we hold that the appellant is entitled for the benefit of Notification No. 25/2012-ST dated 20.06.2012 at Sr. No. 12 (a) and (c). Therefore, on the amount for construction of EWS Flats, the appellant is not entitled to pay service tax. In view of this, for the period prior to 31.03.2015, the appellant have not to pay service tax on the construction of EWS Flats. Thus, for the period prior to 01.04.2015, the appellant is not liable to pay service tax at all on construction of EWS Flats, but thereafter, the appellant is liable to pay only 50% of the service tax on them in terms of Notification No. 30/2012-ST dated 20.06.2012 at Sr. No. 9. Cervices rendered for Construction of bridges - 12/2012-ST dated 20.06.2012 at Sr. No. 13 (a) - HELD THAT:- The construction of Multi-level car parking for Government Medical College and Hospital and contract was entered by PWD, B&R [Public Works Department (Building and Roads)], Amritsar; Repair and renovation work at Medical College, Amritsar to a contract with PWD (B & R), Amritsar; Meritorious School at Ferozpur to a contract with PWD (B & R), Ferozpur; Construction of foot-over bridge at Amritsar to a contract with PWD (B & R), Amritsar.The Sr. No. 9 in the Notification No. 30/2012-ST dated 20.06.2012 is available to the appellant if they provided services to a business entity registered at body corporate - The PWD (B & R) is into the business of construction of building and roads etc. and are also body corporate in terms of section 3 of Punjab Roads and Bridges Development Board Act, 1998. Further, the CPWD is engaged in business / profession of design , construction and maintenance of central government non-residential building other than Railways, Airports; construction and maintenance of residential accommodation meant for central government employee providing consultancy services in planning , designing and construction of Civil Engineer products, as and when required by public undertaking and other autonomous bodies. CPWD like PWD are also body corporate. The name of Punjab State Small Industries Corporation Ltd. was converted into Punjab Small Industries& Export Corporation Ltd. w.e.f. 21.10.1982 which is engaged in business / profession to acquire and hold movable and immovable property. It also gave loan in cash or in kind or in form of building, developed plot of land in the small industry state or machinery and equipment on lease or on hire purchase basis to borrower for the purpose of small, cottage and other industries - the appellant has provided the services to a business entity registered at body corporate and are required to pay 50% service tax in terms of Sr. No. 9 of the Notification No. 30/2012-ST dated 20.06.2012. For construction of EWS Flats, the appellant is entitled for benefit of exemption Notification No. 12/2012-ST dated 20.06.2012 at Sr. No. 12(a) upto 31.03.2015 - For services rendered for Construction of bridges, the appellant is entitled for the benefit of exemption Notification No. 12/2012-ST dated 20.06.2012 at Sr. No. 13 (a) - For other services and flats constructed after 01.04.2015, the appellant is entitled for the benefit of Notification No. 30/2012-ST dated 20.06.2012 at Sr. No. 9 i.e. the appellant is liable to pay 50% of the service tax. The appellant is directed to quantify the demand in terms of the above order and the same is to be deposited within 30 days of the receipt of this order. The appellant is liable to pay interest for the intervening period. The appellant is liable to be penalized as per the impugned order, the quantification is to be done accordingly - appeal allowed by way of remand.
|