9911796707
TMI Blog2025 (5) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... India and Gujarat State Police Housing Corporation Limited. The appellant had been issued show cause notice dated 23.04.2012 for the period from 2006-2007 to 12.08.2010 demanding Service Tax on the amount received by them against construction/repairs works done during the above period. For the subsequent period from 2010-11 to 2013-14covered in the present case, the information was called for from them under summons made. On the receipt of information, the department has issued show cause notice dated 24.08.2015 for demanding Service Tax of Rs. 6,33,640/- under Section 73 (1) of the Finance Act, 1994 by invoking extended period of limitation along with applicable interest. The proposal for imposing penalty under Section 76,77 & 78 of the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs at Jail, construction of POTA Court at Sabarmati Central Jail etc. iii) The services provided to Food Corporation of India are not commercial activity. FCI is also created under the Act of Parliament for the purpose of import, storage and distribution of food grains. iv) The work undertaken for Gujarat State Police Housing Corporation limited are for State Government for its use. These works mainly consist of repairs/renovations and constructions of residential quarters or in some cases, office and Jail premises. v) The benefit of threshold exemption under Notification no. 06/2005-ST has amended from time to time has not been given to them. As substantial raw-material has been used in the course of these works, benefit of Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice Tax in the case of M/s. Devjeet construction, under identical circumstances, holding that such works do not attract levy of Service Tax. ix) There is no short levy on their part and intent to evade payment of service tax has wrongly been alleged against them. The extended period is not invokable in this case and the entire demand of Service Tax is time barred. (x) Hon'ble Tribunal Ahmedabad in the case of Lanxess ABS Ltd. Vs. CCE, Vadodara-2011 (22) STR 587 (Tri-Ahmd.) has held that in cases where Legal interpretation is not clear, invocation of extended period of limitation is not corrrect. 3. During hearing, Learned Advocate submitted synopsis and reiterated the points mentioned in their appeal. He argued that the present issue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was issued a show cause notice on 23.04.2012 demanding service tax for the period from 2006-07 to 12.08.2010 by invoking extended period of limitation. The present show cause notice dated 24.08.2015 issued to the appellant again invokes extended period of limitation for demanding service tax for the period 2010-11 to 2013-14 which is not sustainable. His another argument is that construction activities have been undertaken for the authorities under the State Government, Vadodara Municipal Corporation (VMC), Gujarat State Police Housing Corporation Ltd (GSPHCL), Sabarmati Jail etc which are exempt. Therefore, No Service Tax is demandable from them. His alternate submission is that the benefit of threshold exemption and cum duty benefit sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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