TMI Blog2017 (8) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax under commercial and industrial construction service as is apparent from Circular dt. 27.4.2012. It is apparent that CBEC circulars considered the use of the said property as non commercial in nature. In these circumstances service tax under the head of Commercial and Industrial Construction cannot be levied on such properties. Appeal allowed - decided in favor of appellant. - Appeal No. ST/88067/13 - A/88784/17/STB - Dated:- 31-7-2017 - Shri Ramesh Nair, Member ( Judicial ) And Shri Raju, Member ( Technical ) Shri P. V. Sadavarte, Advocate for Appellant Shri Dilip Shinde, Assistant Commissioner (A.R) for respondent ORDER Per : Raju This appeal has been filed by Shri Sanjeev K. Gaddamwar against confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marily for commerce or industry as regard under poor farmers to sell their produce. He argued that APMC has only charged to its member traders maintenance charge i.e. housekeeping charges that to at minimal rate of ₹ 1400/- per annum. He argued that the ownership of the shops and godowns are always remains with the APMC. Ld. Counsel relied on the CBEC Circular No. 157/8/2012-ST dt. 27.4.2012 to assert that the activity conducted by APMC is not commercial in nature. He further relied on the Circular No.80/10/2004-ST dt. 17.9.2004. 2.2. Ld. Counsel also argued that they are entitled to benefit of Notification No. 25/2012-ST dt. 20.6.2012, 13/2003-ST dt. 20.6.2003, 14/2004-ST dt.10.9.2004 and Notification No.12/2012-ST dt. 17.3.2012. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely in their business interest. Development and maintenance of agricultural market infrastructure undertaken by APMC in accordance with the statute, is for the benefit of all users, rather than an activity solely in the interest of licensees. Hence, APMC cannot be said to be rendering business support service to the licensees. Market fee is not in the nature of consideration for such BSS. 5. As statutory bodies, APMCs provide basic facilities in the market area out of the market fee collected from the licensees, mainly to facilitate the farmers, purchasers and others. APMCs provide a host of services to the licensees in relation to the procurement of agricultural produce, which are inputs in terms of the definition given in section 65(19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. When the property in question is not used by owner for commercial purpose then it cannot be liable for payment of service tax under commercial and industrial construction service as is apparent from Circular dt. 27.4.2012. It is apparent that CBEC circulars considered the use of the said property as non commercial in nature. In these circumstances service tax under the head of Commercial and Industrial Construction cannot be le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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