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2024 (1) TMI 891 - CESTAT NEW DELHIDemands raised in the SCNs under the non-existent charging sections of Sections 65 (105) (zzd), (zzg) and (zzzza) - Exemption by notification no. 25/2012-ST dated 20.6.2012 (entry no. 12) - abatement of 90% of the total cost towards the material when the assessee was only required to pay VAT on 80% of the cost under the UPVAT Rules. Demand under the non-existent charging sections - HELD THAT:- This is not a case of mere wrong mention of a provision in the SCN but a confirmation of demand on charging sections which did not exist during the relevant period at all. It is also a case of ascertaining the demand considering exemption notification which also did not exist during the relevant period. Not only were the wrong provisions invoked in the SCN, but the demands were confirmed under them in the impugned order which shows complete non-application of mind. The provisions were not only wrong but were non-existent during the relevant period - this question is answered in favour of the assessee and against the Revenue and it is held that the demand confirmed in the non-existent legal provisions cannot be sustained. Exemption under Notification no. 25/2012-ST dated 20.6.2012 (S.No. 12) - HELD THAT:- It is undisputed that the services were rendered to the PWD and to NOIDA. PWD stands for Public Works Department which is a department of the State Government. Therefore, it is Government itself and not a Governmental authority. The notification exempts not only services rendered to governmental authorities but also services rendered to the Governments and Local authorities. PWD, being the Government, the question of it having to fall under the definition of ‘Governmental authority’ does not arise. As far as NOIDA is concerned, it stands for New Okhla Industrial Development Authority which governs a part of the National Capital Territory of Delhi and is part of the State of Uttar Pradesh. The term ‘local authority’ is not defined in the notification and hence the commonsensical meaning of the term should be applied. A perusal of the functions of the NOIDA as per section 6 of the Act reproduced above makes it abundantly clear that it falls in the definition of ‘local authority’. Therefore, neither the NOIDA nor the PWD need to fall under the definition of ‘Government authority’ because NOIDA is a ‘local authority’ while PWD is a part of the Government itself. The services of street lighting and other maintenance work carried out by the assessee to these two organizations, also cannot by any stretch of imagination, be called predominantly meant for commerce or business. Since it is held against the Revenue and in favour of the assessee on the first two questions, it is not necessary to answer the third question of extent of abatement under works contract service. It is also not necessary to go into any of other submissions. The impugned order cannot be sustained and needs to be set aside - Revenue’s appeal is rejected and the three appeals of the assessee are allowed.
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