Educational charitable construction outside commercial service tax, with refund admissible on approved college building facts.

Construction of a college building for a public charitable trust, supported by approval from educational authorities and an approved building plan, was treated as construction for educational use rather than commercial or industrial use. The service recipient was a charitable trust, and the tax amount was not shown to have been collected from the recipient because it was adjusted through a credit note. Departmental circulars also supported exclusion of such educational or charitable construction from the taxable category. On these facts, the construction did not fall within commercial or industrial construction service and the refund of service tax paid was admissible.

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Issues: Whether construction of a college building for an educational charitable trust falls within commercial or industrial construction service and whether the refund of service tax paid on such construction is admissible.

Analysis: The building was constructed for a college run by a public charitable trust, and the record showed approval from the competent educational authorities as well as production of the approved building plan. On these facts, the construction was for educational use and not for commercial or industrial use. The service recipient was a charitable trust, and the tax amount was not shown to have been collected from the recipient, as the amount had been adjusted by issuing a credit note. The exemption and clarification reflected in the departmental circulars also supported the view that such educational or charitable construction was not intended to be taxed as commercial or industrial construction.

Conclusion: The construction did not fall under the taxable category of commercial or industrial construction service, and refund of the service tax paid was admissible; the Revenue's appeal was liable to be dismissed.

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