9911796707
TMI Blog2025 (3) TMI 970X X X X Extracts X X X X X X X X Extracts X X X X ..... tial complex, works contract services. For rendering the services, the appellant had entered into an agreement with Rajasthan State Agriculture Marketing Board (RSAMB), Jaipur, Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO), Jaipur Development Authority (JDA). Department observed that in respect of Commercial and Industrial Construction Services‟ provided by the appellant during the period 01.04.2014 to 31.03.2015 the appellant appears to have not paid the service tax amounting to Rs.1, 10, 711/-. 1.1 The Department relied upon the definition of „Service‟ w.e.f. 01.07.2012 under clause 44 of section 65 B of the Finance Act to mean any activity carried out by a person, for consideration. Suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial activities, hence, the exemption benefit, is not available to these authorities/private entities. Hence, the appellant was held liable to pay service tax on the services provided to these entities. 1.2 Resultantly, a SCN No. 1015/14/2016 dated 21.04.2016 was served upon the appellant demanding service tax amounting to Rs.1, 10, 711/- along with the proportionate interest and the appropriate penalties. The said proposal was initially confirmed vide Order-in-Original No.79/2016 dated 31.03.2016 and the appeal against the same has been rejected vide the Order-in-Appeal No.369-370/2018 dated 05.06.2018. This Order-in-Appeal is a common order to another SCN issued to the appellant for the period of demand from 1st April 2010 to 31st M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 13.4 thereof is limited only to public roads and highways, excluding internal roads of commercial complexes constructed for sale at market rates. Ld. Departmental Representative also impressed upon the Boards Circular No.B1/6/2005-TRU dated 27.07.2005 wherein it prescribes a condition that if the construction of a commercial complex and its roads is considered a single contract service tax would be applicable to the gross amount charged for the entire construction including the roads. It is also submitted that in the instant case the appellant did not provide any documentary evidence to support the separation of road construction from the overall commercial construction services. Hence, the benefit of exclusion provided in the definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax, 2022 SCC OnLine SC 224, decided on 23-02-2022] Hon'ble supreme court has dealt with the Circular No. 89/7/2006 as relied upon by the present appellant as well. It has been held that: As per the Circular, activities performed by the sovereign / public authorities under the provisions of law being mandatory and statutory functions and the fee collected for performing such activities is in the nature of a compulsory levy as per the provisions of the relevant statute and it is deposited into the Government Treasury, no service tax is leviable on such activities. Paragraph 3 of the Circular, specifically clarifies that if such authority performs a service, which is not in the nature of a statutory activity and the same is undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posited into the Government Treasury; it will go to the Market Committee Fund and will be used by the market committees. Thus such a fee collected cannot have the characteristics of the statutory levy/statutory fee. Thus, under the 1961 Act, it cannot be said to be a mandatory statutory obligation of the Market Committees to provide shop/land/platform on rent/lease. "If the statute mandates that the Market Committees have to provide the land/shop/platform/space on rent/lease then and then only it can be said to be a mandatory statutory obligation otherwise it is only a discretionary function. If it is discretionary function, then, it cannot be said to be a mandatory statutory obligation/statutory activity. Hence, no exemption to pay service ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
