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2023 (6) TMI 953 - CESTAT KOLKATALevy of Service Tax - construction of residential complex for Indian Army and West Bengal Power Development Corporation Limited, the West Bengal Government Undertaking - contention of the assessee is that vide CBEC Circular No.332/16/2010-TRU dated 24.05.2010, which clarified that in case the Government of India is service recipient and the service provided is directly to the Government of India for its personal use, the service tax is not leviable. HELD THAT:- It is not in dispute that the assesse is engaged in the construction of flat for Indian Army and West Bengal Power Development Corporation Limited and these residential complexes are for personal use of Indian Army and WBPDCL. The CBEC has clarified vide its Circular No.332/16/2010-TRU dated 24.05.2010, which holds that if the NBCC, being a party to a direct contract with GOI, engages a sub-contractor for carrying out the whole or part of the construction, then the sub-contractor would be liable to pay service tax as in that case, NBCC would be the service receiver and the construction would not be for their personal use. As it is not in dispute that the residential flats constructed by the assessee, are for personal use of Indian Army and WBPDCL, which are a part of Government of India/State Government. Therefore, the said service provided by the assessee is to Government of India for personal use. Therefore, in the light of the CBEC Circular No.332/16/2010-TRU dated 24.05.2010, the assessee is not liable to pay service tax. The impugned demand confirmed against the assessee is set aside. Consequently, the appeals filed by the assesse are allowed - As no demand is sustainable against the assesse, therefore, question of imposing penalty does not arise. There are no merit in the appeal filed by the Revenue and the same is dismissed.
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