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2016 (10) TMI 743 - AT - Service TaxConstruction services provided to NTPC - Commercial or Industrial Construction Service - whether services provided to NTPC is for social or philanthropic purposes and the demand of service tax is not justified? - the decision in the case of P.B. Rathod Vs. CCE, Nashik [2015 (10) TMI 1854 - CESTAT MUMBAI] referred - Held that: - the decision in the case is not applicable as service were provided to a Government of Gujarat Water Supply and Sewerage Board and Construction of Sports Complex Stadium, allowed to be used by public. Therefore the services were provided not for commercial or industrial uses. M/s NTPC Ltd. is a Public Ltd. Company and indeed engaged in the industrial and commercial activities i.e. generation of power and selling thereof. Therefore the laying of pipeline even for providing to water supply to staff quarter is not for social or philanthropic purposes. The staff quarter and welfare of the employee is part of the statutory obligation of M/s NTPC Ltd. for ultimate object of running the commercial and industrial organisation. Therefore the service provided by the appellant is for use in the activity of commercial or industrial activity - service provided by the appellant to the respondent M/s NTPC Ltd. clearly falls under the category of Commercial or Industrial Construction Service - service Tax leviable. Period of limitation - Held that: - the appellant never informed the department about their activity, even did not bother to take any opinion either from department or from any legal professional. Since, the department was not aware about activity of the appellant, therefore the extended period was rightly invoked. Imposition of penalty - Held that: - the appellant recorded the transaction in the books of account, therefore there is no malafide intention on their part which shows reasonable cause for non-payment of Service Tax. There is a reasonable cause shown by the appellant for non-payment of Service Tax in respect of service provided to M/s NTPC Ltd - Section 80invoked - penalty imposed u/s 76, 77 & 78 of the FA, 1994 waived. Appeal disposed off - partly decided in favor of appellant.
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