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2024 (2) TMI 1308 - CESTAT HYDERABADEligibility for exemption under Notification No.25/2012-ST - Works Contract Services (WCS) provided to Andhra Pradesh Education Welfare Infrastructure Development Corporation Ltd (APEWIDC), Andhra Pradesh Medical Services Infrastructure Development Corporation Ltd (APMSIDC), Andhra Pradesh State Police Housing Corporation Ltd (APSPHCL) - exemption for construction of IT tower building by way of Works Contract provided to SEZ Authority - HELD THAT:- The three entities/institutions viz., (i) APEWIDC, (ii) APMSIDC & (iii) APSPHCL have been set up by the State Government and are fully controlled by the State Government for furthering the statutory functions of the State Government like providing health, medical and education and housing facilities. It is further the function of the State Government to provide housing for its staff including the Police staff. It is found from the copy of the Andhra Pradesh Reorganisation Act, 2014 published in the Gazette of India Extraordinary Part II dated 01.03.2014, wherein Sec 68(1) of the said Act provides that – the companies and corporations specified in the Ninth Schedule constituted for the existing State of Andhra Pradesh shall, on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day, subject to the provisions of this section - the aforementioned three entities are carrying out the activities as mentioned in Article 243W read with Twelfth Schedule of the Constitution of India and thus, the Appellant is entitled to exemption under Notification No.25/2012-ST with respect to services provided to these three entities, being WCS. Services provided through the main contractor by the Appellant to APEWIDC - HELD THAT:- It is found from the documents produced in the course of Hearing corroborate that the Appellant has rendered WCS being construction of school buildings, which is exempt under Notification No.25/2012-ST, S.No.12(a) & (c) and thus, the Appellant is also entitled to exemption as subcontractor under S.No.29(h) of the said notification. The demand of Rs.16,91,682/- and Rs.3,80,518/- being services provided to governmental authorities set aside - the demand of Rs.6,26,762/- on WCS provided to APIIC, Kakinada (SEZ), it is held that the same is exempt under the provisions of the SEZ Act (Sec 7 read with Sec 51), which has got overriding effect on the provisions of Service Tax Act, and accordingly, this demand is also set aside. The demands as well as penalties imposed are set aside - this appeal is allowed.
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