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2023 (2) TMI 782 - AT - Service TaxLevy of service tax - commercial construction service or not - construction service to GERMI (construction of a building is in respect of educational university which is under a trust) - HELD THAT:- The lower authorities had no occasion to deal with this issue. In this position, we are of the view that the issue in respect of construction of GERMI needs to be re considered from the angle of work contract service. As regard the issue of service tax on supply of furniture, the Lower Authority have held the said activity as commercial construction and demanded tax accordingly. Mere supply of readymade furniture cannot be classified as commercial construction service supply of furniture is nothing but sale of furniture. Hence the same cannot be classified as taxable services. Accordingly the service tax demand of Rs.52,228/- is not sustainable and the same is set aside. Demand of Service tax of Rs. 34,483/- on the activity of strengthening of culverts on roads - HELD THAT:- This service is directly connected to the road and any work related to the public road is excluded from the service of commercial or industrial construction. For this reason the same cannot be taxed under commercial or industrial construction service - the demand of Rs. 34,483/- is set aside. The appeal relates to demand ot Rs. 52,228/- of supply on furniture and Rs. 34,483/- relates to strengthening of culverts on road is allowed. Appeal relates to the issue of construction of building for GERMI is allowed by way of remand to the Adjudicating Authority for passing a fresh order on all the issues. Appeal allowed in part and part matter on remand.
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