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Mana Constructions Versus Commissioner of Central Excise, Nagpur

2017 (11) TMI 714 - CESTAT MUMBAI

Levy of service tax - Management, Maintenance or Repair service - Cleaning services - Commercial and industrial construction service - Construction service provided to MAHAGENCO - Construction of residential complex - Held that: - the said service was provided to Government Medical College, Nagpur, Visvesvaraya National Institute of Technology, Nagpur and Central Railway. Since the service provided in relation to Government building which is not for commercial purpose the service of management, .....

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ant for the Government building i.e. Ravi Bhavan (Chief Minister Secretariat), Hyderabad House (Dy. Chief Minister Office) and cleaning of MLA Hostel rooms, hall and passage. Since all these buildings for which cleaning service was provided are of Government, therefore it is not taxable under cleaning service - demand set aside. - Commercial and industrial construction service - Held that: - this service was provided in respect of guest house and canteen of Visvesvaraya National Institute of .....

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ged in generation of power which is a commercial activity therefore construction service provided to MAHAGENCO cannot be said to be a service of construction of non-commercial Government building, therefore in our view the construction service provided for MAHAGENCO is taxable - demand upheld. - Construction of residential complex - Held that: - construction of residential complex of 14 flats was provided for company M/s. Karamchand Thapar & Brothers Ltd. for residence of Directors/Officers .....

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nd was paid by the appellant along with interest - penalty set aside. - Appeal allowed in part. - Appeal No. ST/703/12 - Dated:- 9-11-2017 - Shri Ramesh Nair, Member ( Judicial ) And Shri Raju, Member ( Technical ) Shri D. H. Nadkarni, Advocate for Appellant Shri M. P. Damle, Asstt. Commr. (A.R) for respondent ORDER Per : Ramesh Nair The issue involved in the value of following demand of service tax and penalty thereon. Services Service Tax Amount Penalty Management, Maintenance or Repair fo .....

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contesting the service tax demand of ₹ 9,68,838/- in respect of Works Contract Service and ₹ 1,19,091/- in respect of Transport of Goods by Road Service. As regard Management, Maintenance or Repair for goods Equipments or Property service, he submits that this service was provided to Government Medical College, Nagpur which is maintained by Public Works Department of Government of Maharashtra and it is non- commercial in nature. The medical college providing health services to socie .....

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of corroded pipeline by new pipe lines and replacement of tank by new RCC underground was provided to Indian Railways which is a non-commercial Government property, therefore the management, maintenance or repair service provided in respect of non-commercial Government building is non taxable as per retrospective exemption from 16.6.2005 to 1.7.2012 in terms of Section 98 of the Finance Act, 1994. As regard demand of ₹ 3,99,722/- in respect of Cleaning Service he submits that the said serv .....

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e, the same is not liable for service tax as held in judgment of Harsh Constructions Pvt. Ltd. Vs. Commr. of C. Ex.& Cus., Nashik 2014 (35) STR 617 (T). Some construction service was provided in respect of construction of Podium, Wall panel etc. for Maharashtra State Power Generation Company Limited which is owned by State Government. Construction service was provided in respect of residential complex of 14 flats for M/s. Karamchand Thapar & Brothers Ltd. i.e. for residence of Directors/ .....

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by both the sides, we find that as regard Management, Maintenance or Repair for goods, equipments or properties service, the said service was provided to Government Medical College, Nagpur, Visvesvaraya National Institute of Technology, Nagpur and Central Railway. Since the service provided in relation to Government building which is not for commercial purpose the service of management, maintenance or repair of non-commercial Government buildings is exempted for the period from 16.6.2005 to 1.7 .....

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efund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times. (3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2012 receives the assent of the President. From the reading of the above Section 98 of the Act, it can be seen that the management, main .....

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age. Since all these buildings for which cleaning service was provided are of Government, therefore it is not taxable under cleaning service. The definition of cleaning activity provided under Section 65 (24b) is as under: Section 65 (24b) "Cleaning Activity" means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilising of objects or premises, of - (i) commercial or industrial buildings and premises thereof; or (ii) factory, plant or machine .....

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s and such premises thereof. As discussed above the building and premises for which cleaning service was provided are Government building/premises which is non-commercial Government building, hence the same is not taxable. Accordingly the demand of ₹ 3,99,722/- in respect of cleaning service is set aside. 6. As regard demand of ₹ 13,84,423/- in respect of commercial and industrial construction service, we find that this service was provided in respect of guest house and canteen of Vi .....

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is crystal clear that for a construction to be levied to Service Tax, whether under commercial or industrial construction service or under works contract service the same has to be used for commerce or industry. The construction of colleges, Government hospitals or open university cannot be said to be commercial or industrial in nature. In other words, at the relevant time, the levy did not cover non-commercial or non-industrial construction (other than residential). Therefore, prima facie, ther .....

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