Appellate Tribunal rules in favor of M/s.Nakshtra: Refund allowed for service tax on construction activities

The Appellate Tribunal CESTAT, Mumbai held that the services provided by M/s.Nakshtra, Pune constituted a "works contract" and not "construction of commercial complexes." The refund claim of Rs.3,15,254 for service tax on construction activities was allowed, as the rate of tax was deemed to fall under Section 35D (3) of the Central Excise Act, 1944.

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The Appellate Tribunal CESTAT, Mumbai ruled on a case involving a refund claim of Rs.3,15,254 paid by M/s.Nakshtra, Pune for service tax on construction activities. The issue was whether the service fell under "construction of commercial complexes" or "works contract." The matter was referred to a Division Bench as the rate of tax was in question under Section 35D (3) of the Central Excise Act, 1944.

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