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2020 (9) TMI 837 - AT - Service TaxWorks Contract Services - service provided to organisations like Andhra Pradesh Power Generation Corporation (AP GENCO), Andhra Pradesh Tourism Development Corporation (APTDC), etc. - Government/ local authority/ Government authority or not - benefit of N/N. 25/2012-ST - whether the appellant has provided service to Government/ local authority/ Government authority as per the exemption Notification No. 25/2012-ST.? - HELD THAT:- All the companies / Corporations have been established by the Government of Andhra Pradesh under the various Acts and /or ‘Government order’, as aforementioned and thus we hold that the appellant has provided service to Governmental authority. Evidently all the service recipients have been set up by the State Government, and are directly under the control of the various Ministries of the State Government. Thus, the service recipients are covered under sub clause (i) of clause (5), of the definition of the term ‘Govt. Authority’, in Notification No. 25/2012-ST as amended by Notification No. 2/2014-ST (by way of substitution). Accordingly, the appellant is entitled to exemption under Notification No. 25/2012-ST, and the demand of ₹ 97,63,710/- is set aside. Liability of service tax on the flats constructed and allocated to the land owner under the development agreement - HELD THAT:- The construction of flats under the ‘development agreement’ with the land owner by the appellant is on principal to principal basis. In such transaction, there is neither any element of service provided to the land owner, nor any element of sale. Accordingly, we hold that service tax is not imposable on this transaction and accordingly set aside the demand of ₹ 5,55,458/- - demand set aside. Non payment of service tax on ‘trenching works’ done for GTL Limited - case of appellant is that the Court below failed to appreciate the fact that the said demand is for services rendered during the period 2010-11 whereas the show cause notice have been issued on 09.12.2016 - extended period of limitation - HELD THAT:- The appellant has already provided the service as well as raised the invoice before 30.06.2011. Further, admittedly appellant have not given the option for payment of tax as per the date of receipt of consideration. Thus, we hold that demand of tax, relying of Rule 11 of Point of Taxation Rules is bad. Accordingly, we set aside the demand of ₹ 63,973/-. Appeal allowed - decided in favor of appellant.
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