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TMI Blog2022 (11) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... led their returns regularly and also deposited the admitted tax. Pursuant to show cause notice dated 6.11.2019, service tax has been demanded as short paid/not paid, based on the Income Tax records like Form 26 AS, Income Tax Return, Profit & Loss Account, etc. for the financial year 2014-2015. The proposed demand of Rs.11,67,226/- was confirmed with equal amount of penalty under Section 78. Further, late fee of Rs.21,000/- has been imposed under Rule 7C read with Section 70. Further, penalty of Rs.10,000/- has been imposed under Section 77(2) for not showing correct gross receipt of services in ST-3 Returns. 3. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals), who vide impugned order-in-appeal set aside th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol (Venkatesh Shiksha Samiti), Service provided is construction service with material, which falls under "Works Contract Service". The gross amount received is Rs.51,15,536/-. 6.1. It is contended that service receiver is a trust, a charitable trust registered under Section 12 A/12 AA of the Income Tax Act, providing service of education and are not involved in any commercial activities. It is further contended that imparting of education is also in the nature of religious-charitable activities and hence, exempted vide Sl.No.13 of Notification No.25/2012-ST. Similarly, construction services provided to 'Dada Virendrapuri Eye Hospital', which is also provided to a trust registered under Section 12 A/12 AA of the Income Tax Act, and be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of the poor, education, yoga, medical relief, preservation of environment, etc. and the advancement of any other object of general public utility. 6.6 Further, in the facts of the case, it is admitted that the service tax has been provided for civil construction of school building or hospital building to a charitable institutions or Trust registered under Section 12 AA of the Income Tax Act and the said activities are covered under the definition of 'Charitable Purpose' under the Income Tax Act. Further, the exemption notification in clause 13 (C) only states that, services provided by way of construction, erection, alterations, etc. is exempted, if the building is owned by an entity registered under 12 AA of the Income Tax Act and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of property. Admittedly, in the facts of the present case, there is no contract for construction of a house property alongwith material. Rather, admittedly, appellant have sold fully constructed and furnished house property. Hence, I hold that no service tax is payable on the same and the demand of Rs. 55,620/- is set aside. 8. So far the ground, relating to demand of Rs. 64,259/- with respect various civil constructions/maintenance works done for Narmada Gelatine Ltd., the works relates to mainly repairs and maintenance and some of the work also relates to new construction work. The appellant had paid the service tax after availing abatement at 60% with respect to new construction and 40% abatement with respect to repair & renovati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded or to be provided, whereas the appellant have maintained their account on cash basis/receipt basis. Accordingly, the demand of Rs. 64,259/- is set aside. 9. So far the demand on other receipts as per profit & loss account Rs. 47 lakhs is concerned, I find that the demand of tax has been made arbitrarily without relating the said receipt to any service provided, only on the allegation that the appellant did not provide any supporting documents with respect to the same and have demanded service tax of Rs. 5,85,920/-. The learned Counsel explains that the said receipt is in respect of construction of individual houses and the same is an exempted activity under the service tax provisions. Accordingly, the demand is hereby set aside. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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