9911796707
TMI Blog2024 (1) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... lant has contravened the provision of Section 68 read with Rule 6 of the Service Tax Rules, 1994 in as much as they failed to discharge their Service Tax liability; Section 69 read with Rule 4 in as much as they failed to apply for registration with service tax department; Section 70 in as much as they failed to assess the tax due on the services provided by them and failed to furnish ST 3 returns; Section 75 in as much as they failed to pay the interest leviable on the service tax not paid; and hence, Service Tax not paid by them is recoverable from them under Section 73(1) by invoking the extended period of five years, along with interest under Section 75 and penalty as provided under Sections 76,77 and 78 is imposable upon them. The show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2012 as is case for the earlier period. 5. He further submits that the activity carried out by appellant is not taxable being construction of non-commercial building. The activity of construction of bus shelters for BRTS, Ahmedabad and construction of a Conventional Centre is non-taxable. As per the definition of works contract, contracts which are of non-commercial in nature are out of purview of Service Tax. Referring to Article 243W read with Twelfth Schedule of the Constitution of India, 1949, he submits it cast responsibility on Municipality. Hence, it is sovereign function of Municipality and cannot be treated as Business or Commerce. Refers to Board's Circular No. 80/10/2004-S.T. dated 17-9-2004 and states that the contracts awarde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09.2012. As per Sr. No. 13(b) of Mega exemption Notification 25/2012-ST, dated 20.06.2012, "13. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana." Construction of Bus Shelters and Railing for Ahmedabad BRTS Corridor under JNNURM or RAY is pertaining to original work and hence not liable for service tax. 7. He further submits for Gujarat University project M/s. P C Snehal Construction Co. paid amount as per RA Bill after deducting service tax, duties, other levies, etc. M/s. P C Sne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us shelters for BRTS and a Conventional Centre, Auditorium & Exhibition Hall are in nature of non-commercial. Hence, it is exempted. 9. Without prejudice, he further submits that Under "Works Contract Service" only service portion in the execution of works contract is taxable. In terms of Section 67 of the Act, what can be subjected to tax is the value of taxable services and not goods portion. Even where a service is taxable under Works Contract Service, only the service portion in execution of a works contract is taxable in terms of provisions of Rule 2A of Service Tax (Determination of Value) Rules, 2006 and not the entire amount of works contract. The adjudicating authority has conveniently adopted the entire works contract value as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be upheld the category of 'Works Contract service'. On going through the order in original we find that the learned commissioner of the view the services are covered under works contract service but no elaboration was given as regards the exemption, valuation and ingredients of the service i.e. works contract service. In the said service, the main ingredients are that of construction BRTS, Ahmedabad and other for construction of a Conventional Centre, Auditorium and Exhibition Hall for Gujarat University. However, the learned Commissioner has not given clear findings why the services are not exempted on basis of valuation. These are the main factor which decide whether the service is taxable or not. Therefore, this aspect needs to be rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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