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TMI Blog2013 (11) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... nd this Stadium is known as Shiv Chhatrapati Sports Complex. This stadium was constructed on tender invited by the Government of Maharashtra. As per the tender, the scope of the work is described as follows:- "The existing sports facility constructed in year 1994 for holding National games will be supplemented by constructing additional facilities as required by organization of Commonwealth Youth Games - 2008. Construction of new facilities relates to various sports such as:- (a) Indoor Badminton Hall of size 60 x 40 m (b) Fitness Centre (c) Shooting Range complex (d) Spo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and accordingly, he confirmed a demand of Rs. 10,21,11,459/- under Section 73 of the Finance Act, 1994 and also imposed an equivalent amount of penalty under Section 78 of the Finance Act, 1994. Aggrieved with the impugned order the appellant is before us. 3. The learned Counsel for the appellant submits that as per the certificate dated 13/03/2008 procured from the Grampanchayat, Mahalunge, it may be seen that the plot of land on which Shree Shiv Chhatrapati Sports Complex is constructed, is not registered in their records either as for residential or commercial purpose. However, the said plot of land owned by Government of Maharashtra is for the public welfare use. They have further certified that according to their records, the buil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in nature. Generally, government buildings or civil constructions are used for residential, office purposes or for providing civic amenities. Thus, normally government constructions would not be taxable. However , if such constructions are for commercial purposes like local government bodies getting shops constructed for letting them out, such activity would be commercial and builders would be subjected to service tax." He also relies on the Circular No.151/2/2012-Service Tax dated 10/02/2012, wherein in para 2.4, it has been clarified as follows:- "2.4 Conversion Model : Conversion of any hitherto untaxed construction /complex or part thereof into a building or civil structure to be used for commerce or industry, after la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In view of this letter, the learned Commissioner has confirmed the duty demand. 4. Learned Commissioner (AR) reiterates the findings given in the adjudication order by the adjudicating authority in particular, he drew our attention to the rates for the use of the stadium prepared by the sports complex. In the rates given, there is a column for usage for commercial purposes which points to the fact that the stadium is being allowed to be used for commercial purposes and separate rates have been fixed for such usage. He also invites our attention to para 2 of the Government Resolution which provides that the Committee shall be competent to use the area to the extent of 1 / 3 rd of the total area for commercial purposes, that is to say, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations/municipalities and other local authorities, the construction has been treated. As per the certificate issued by the Gram Panchayat of Mahalunge, the construction has not been treated as a residential construction or for commercial purposes. Since the plot of land is owned by Government of Maharashtra and its use is for public purpose, the classification of construction remains non-commercial. Accordingly, he pleads for allowing the appeal. 6. We have carefully considered the rival submissions. 6.1 The question involved herein is whether the Sports Complex Stadium constructed for the purpose of holding games can be considered as a commercial or industrial construction, merely on the ground that the stadium is allowed to be used by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Merely because some amount is charged for using the Park, it cannot be said that it is a commercial or industrial construction. Adopting the same logic, the Sports Stadia in the present case is also a non-commercial construction for use by the public. Therefore, we are of the considered view that the Sports Stadium constructed for conducting Commonwealth Games, is a non-commercial construction. 7. In view of the foregoing, who hold that Shiv Chhatrapati Sports Complex constructed by the appellant, M/s. B.G. Shirke Construction Technology Pvt. Ltd., is a non-commercial construction and, therefore, it is not liable to service tax under the category of 'Commercial or Industrial Construction Service'. Accordingly, we allow the appeal. ( Dic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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