TMI Blog2018 (7) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered by the appellant for construction of building such as hospitals, educational institutions etc. is correct or not? - Held that:- Only when the building is used for commercial purpose, the demand of service tax is sustainable. Tribunal’s decision in Banna Ram Choudhary Vs CCE Jaipur [2017 (9) TMI 86 - CESTAT NEW DELHI] has analyzed the very same issue holding in favour of assessee that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the period 2006-07 and 2008-09 demanding service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. Consultant Shri S. Ramachandran submitted that, admittedly, even as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature, the levy of service tax cannot sustain. 3. Ld. A.R Shri S. Govindarajan reiterated the findings in the impugned order. 4. Heard both sides. 5. The issue whether the demand of service tax under Commercial or Industrial Construction Service‛ rendered by the appellant for construction of building such as hospitals, educational institutions etc. is correct or not. The defini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upied, or to be occupied, primarily with; or (iii) engaged, or to be engaged, primarily in, (iv) commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways transport terminals, bridges, tunnels and dams; (Section 65 (26b) of the Finance Act, 1994) Taxable Service means any service provided or to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clear that only when the building is used for commercial purpose, the demand of service tax is sustainable. The Tribunal s decision relied upon by the Ld. Consultant in Banna Ram Choudhary Vs CCE Jaipur (supra) has analyzed the very same issue holding in favour of assessee that when the construction of buildings are not used for any commercial purpose, the levy of service tax cannot sustain. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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