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2022 (5) TMI 1250 - AT - Service TaxConstruction for the purpose of Commerce and Industry or not - Hut Bazaar as was constructed by the appellant for Nagar Palika Parishad, Dhamtari - Whether Hut Bazaar was intended as Nagar Palika Parishad, Dhamtari to be used for any commercial gains instead that of the welfare use thereof? - HELD THAT:- Clause No. 14 (d) of the Mega Exemption Notification further clarifies that any infrastructure provided for the agricultural produce, the services of construction thereof shall be exempted from the tax liability. The department has not produced any document to show that the stalls of ‘Hut Bazaar’ were rented out or auctioned to the farmers. Though the show cause notices alleges the amount proposed to be recovered as a liability towards an amount received after auction of ‘Hut Bazaar’ but there is no single document to support those allegations. The Adjudicating Authority below has denied the money collected by the Government Authorities to whom the services have been provided by the appellant, to be an amount of auction. It is rather mentioned by Commissioner (Appeals) in the order under challenge that the ‘Bazaar Shulk’ / the nominal fee was lifted w.e.f. 01.04.2018. The issue of collection of nominal fee with respect to the stalls for facilitating the farmers is not an activity of commerce. It is held that Commissioner (Appeals) though had been thoroughly meticulous about the entire demand proposed in the show cause notice but has been wrong while considering the construction of ‘Hut Bazaar’ as an activity of commerce and industry. Appeal allowed.
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