Airport construction exclusion applied to an air catering unit, leading to waiver of predeposit and stay of recovery.

Construction of a catering unit within an airport area was held prima facie to fall outside commercial or industrial construction service because the statutory exclusion for services provided in respect of airports applied. The term "airport" was read with the Airports Authority of India Act to include an aerodrome, and an aerodrome covers buildings and structures situated on or appertaining to it. The fact that the area was leased to another entity did not change its character as part of the airport, and the unit was not treated as a passenger facility directly used by passengers. Predeposit was waived and recovery stayed pending the appeal.

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Issues: Whether the construction of an air catering unit at an airport was prima facie covered by commercial or industrial construction service, or excluded as construction in respect of an airport or aerodrome, so as to justify waiver of predeposit and stay of recovery.

Analysis: The definition of commercial or industrial construction service excludes services provided in respect of airports. The expression "airport" under the Finance Act is linked to the Airports Authority of India Act, which in turn includes an aerodrome. An aerodrome includes all buildings and structures thereon or appertaining thereto. On a prima facie view, a catering unit constructed within the airport area formed part of the aerodrome/airport, and the fact that the area was leased to another entity did not alter its character as part of the airport. The unit was also not treated as a passenger facility in the sense of a facility directly used by passengers at the airport.

Conclusion: The construction was prima facie excluded from commercial or industrial construction service, and predeposit was waived with stay of recovery during pendency of the appeal.

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