Construction of Airport Parking Not a Works Contract: Tribunal Grants Waiver & Stay

The Tribunal held that the construction of the multi-level car parking (MLCP) at New Delhi Airport should be considered an activity in respect of the airport, thus excluding it from the definition of works contract service. The appellant was granted a waiver of predeposit and a stay against recovery for 180 days from the date of the order due to making a prima facie case on merits.

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Issues:
Classification of service under works contract for construction of multi level car parking (MLCP) at New Delhi Airport.

Analysis:
The appellant constructed a MLCP for New Delhi Airport under a works contract between February 2009 to February 2011. The Revenue contended that the MLCP facility cannot be included under passenger facility as it is used by passengers and others. A demand for service tax of Rs. 9,69,78,242/- was confirmed with interest and penalties. The definition of works contract service excludes works contract in respect of airports, among other things.

The main issue is whether the construction of MLCP can be considered an activity in respect of the airport. The Tribunal referred to a previous case involving a building for air cargo agency near an airport, which was excluded from the definition of works contract service. The Tribunal concluded that the MLCP should be considered a part of the airport and the activity related to the airport. Therefore, the appellant made a prima facie case on merits. Consequently, the requirement of predeposit was waived, and a stay against recovery was granted for 180 days from the date of the order.

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