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TMI Blog2024 (2) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... Agency under the category of ' works contract service ' made taxable under section 65 (105) (zzzza) of the Finance Act, 1994 the Finance Act and confirming part of the demand with interest and penalty. 2. The appellant is a contractor. Goa Development Agency floated tenders for development of a market at Biocholim and a market Ponda and other Miscellaneous Works at Ponda. The appellant was awarded the contract. 3. A show cause notice dated 22.10.2013 was issued to the appellant alleging therein that the shops/space in the market complex had been allotted to various business entities by Ponda and Biocholim Municipal Council for a consideration to be used by them for commercial purpose. Thus, it appeared to the department that the said act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involves both supply of material as well as construction service. Investigations conducted by the Department confirmed that VAT has been deducted by GSUDA in the RA Bills and the said amount has been paid by GSUDA into the Government Treasury by way of challans. Therefore, by virtue of said payment of VAT made by GSUDA, the condition (i) to the Explanation of "Works of Contract" as defined in terms of Section 65 (105)(zzzza) of the Finance Act, 1994, has been fulfilled. The agreements executed between the Noticee and GSUDA and subsequent RA Bills raised in this regard also confirms that the renovation and restoration works undertaken by the Noticee would fall under these scope of condition (ii) (d) to the Explanation of "Works Contract" as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 36. A plain reading of the above three clauses indicate that all services related to construction involving sale of material is covered within the "Works Contract Service". The words "primarily for commerce or industry" figuring in clause (b) of the Explanation does not mean that if the construction is not meant for commerce or industry, it would not fall within the scope of "Work Contract Service". In this case the construction related work undertaken at Ponda market which was gutted by fire would fall within the scope of renovation and restoration work mentioned in clause (d) of the Explanation. Similarly the construction service undertaken at the existing market place at Bicholim would also squarely fall within the ambit of clause (d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and it is as follows : "Section 65(105)(zzzza) 'taxable service' means any service provided or to be provided to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams. Explanation.-For the purposes of this sub-clause, "works contract" means a contract wherein,- (i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and (ii) such contract is for the purposes of carrying out , - (a) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner, the words 'primarily for commerce or industry' figuring in clause (b) of the Explanation would not mean that if the construction is not meant for 'commerce or industry', it would not fall within the scope renovation or restoration work mentioned in clause (d) of the Explanation. 12. It is not possible to accept this finding recorded by the Commissioner as the words 'primarily for commerce or industry' obviously mean that the renovation or restoration has to be mainly for the purpose of commerce or industry. If the building is not used primarily for commerce or industry, the construction would not be taxable under section 65(105)(zzzza) of the Finance Act. 13. Even if, as contended by the appellant that the activity carried out b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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