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TMI Blog2025 (3) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the appellant and based on the Form 16-A and the other documents provided, the department being of the view that the appellant had not registered themselves and failed to discharge the service tax liabilities and had willfully suppressed the material facts, issued a show cause notice calling upon the appellant to discharge service tax on the Management, Maintenance and Repair Services rendered from 16.06.2005 to 26.07.2009, and discharge service tax on Commercial Industrial Construction Services rendered from 16.06.2005 to 31.03.2010 along with applicable interest and proposal for imposition of penalties. After due process of law the adjudicating authority, vide the impugned OIO, dropped the demand under the category of Management, Maintenance and Repair Services in respect of the services rendered by the appellant relating to Government roads but however, confirmed the demand of service tax of Rs.3,31,310/- on the appellant for the taxable services rendered under the category of Management, Maintenance and Repair Services to commercial entities during the period 01.07.2005 to 31.03.2009 and also confirmed a demand of Rs.18,53,351/- for the taxable services rendered under Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the case of Green Environment Service Cooperative Society Limited versus Union of India [2009 (13) STR 250 (Guj.)], wherein the court has held that the treatment of effluents and waste is an activity of environment protection and in public interest. 4. The Ld counsel also submitted that the show cause notice Sl.No.138/2011 (Commissioner) dated 09/12/2011, came to be issued demanding service tax on the following: Sl. No Period Nature of Works Tax Demanded 1 2005-06 to 2008-09 Repair & Maintenance of Roads Rs.96,64,497/- 2 2005-06 to 2009-10 Construction of CETP and Construction at Police Academy, Chennai ( Tamil Nadu Police Housing Board Ltd) Rs.18,53,351/- 3 2005-06 to 2008-09 Repair & Maintenance works at Police Academy, Chennai Rs.3,21,696/- Total Rs.1,18,49,158/- 5. The Ld. Counsel also stated that the learned adjudicating authority has passed the impugned order dropping the demand at Sl.No.1 pertaining to demand on repair and maintenance of Roads. 6. Ld. AR Shri. N. Satyanarayana appeared for the respondent and reiterated the findings in the impugned order in original. 7. Heard both sides and perused the records. We f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computer software (b) "properties" includes information technology software. (4) Section 65 (105) (zzg) of the Act defines taxable service with respect to management, maintenance or repair service as - Any service provided or to be provided to any person by any person in relation to management, maintenance or repair. 9. We also note that the impugned OIO has noticed Section 98 of the Finance Act, 2012 which provided as under: "Special provision for exemption in certain cases relating to management etc. of non-commercial government buildings (section 98) "(1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of non-commercial Government buildings, during the period on and from the 16th day of June, 2005 till the date on which Section 66B comes into force." 10. As regards the demand confirmed with respect to the construction activities undertaken in the buildings of Police Academy/office buildings for Tamil Nadu Police Housing Corporation, Chennai, under the category "commercial or industrial construction service," we notice that the appellant has placed reliance on the decisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Government Buildings. Therefore, we hold that the services of construction or repair or maintenance rendered by the appellant to these institutions in these buildings/office premises are not exigible to service tax as commercial or industrial construction services. 12. As regards the proposal to levy service tax on the repair and maintenance work at police academy which has been carried out by the Appellant, we hold that when the Department had already proposed to cover the services of the appellant rendered to the aforesaid policy academy under "commercial or industrial construction service", then we see no reason why the classification of the services rendered by the appellant to police academy in respect of certain activities of repair are thereafter proposed for coverage under the head "management, maintenance or repair service", when the said definition of commercial or industrial construction itself, under section 65 (25b) (d), included "repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure". As such, when the activities of the appellant are prima facie coverable under the limbs of a particular classification bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the pollution, for protection of health of the public and for restoring pollution free environment. That therefore being in public interest, the construction of ETP will not fall under the category of commercial construction. We cannot find much merit in this argument put forward by the ld. counsel for the appellant. The individual dying units formed various associations viz. M/s. Andipalayam CETP, M/s. Veerapandi CETP and M/s. Mannarval CETP. These associations were formed to construct the CETPs,, who awarded the contract to main contractor M/s. Enkem Engineers (P) Ltd. who subcontracted to appellant and also undertook directly. The construction of CETPS is thus under the behest of the association thus formed. Merely because the contract is awarded by this association, it cannot be said that the CETP is for public interest or for non-commercial purpose. The ld. counsel has adverted our attention to the objectives contained in the Memorandum of Understanding of these associations. It is seen stated that the object of the association is to develop CETP for chemically treating and processing dyeing effluents, sewage waters from commercial establishments, factories, lodge houses, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the contention that CETP is not installed for commercial purpose and therefore would not fall within Commercial or Industrial Construction Service is not tenable. We also do not find any merit in the argument of the ld. counsel that Board Circular No.80/2004-ST dated 17.9.2004 is in support of the appellant and that construction does not fall within the category of commercial construction. We find the issue against the appellant. 14. In view of the aforesaid categorical finding of this Tribunal, we hold that the construction of common effluent treatment plant undertaken by the appellant is liable to be taxed under " Commercial or Industrial Construction" service and the demand of service tax along with interest thereon in respect of the said work carried out by the appellant is correct and tenable in law. 15. We also note that the appellant had neither taken the registration as required under the Finance Act, 1994 and the rules thereunder, nor filed the ST-3 returns that are mandated to be filed by a registered service provider. We also find that the appellant had not raised the plea of bonafides at the first instance during the investigation and had only pleaded ignorance o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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