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of <h1>Tribunal rules in favor of appellant on Service Tax liability for construction activities under government schemes</h1> <h3>M/s Tirathdas Shaukat Rai Construction Pvt. Ltd. Versus CCE, Indore</h3> The Tribunal ruled in favor of the appellant in both issues. In the first issue concerning liability for Service Tax under the Construction of Residential ... Construction of Residential Complex Service - construction of residential units for Indore Municipal Corporation under Jawaharlal Nehru National Urban Renewal Mission Scheme for ecomically weaker sections - Held that: - the construction of residential units for EWS JNNURM for Indore Municipal Corporation is clearly covered by exemption N/N. 28/2010 ST dated 22/06/2010 - demand set aside. Development of plots for accommodation of people in slum locality under Valmiki Awas Mission- Baba Saheb Ambedkar Yojana for economically weaker sections as developed by Government of Madhya Pradesh - Held that: - the appellants are not engaged in any construction of residential units. They were mainly engaged in development of plots in the slum locality in terms of an arrangement with main contractor for Government of Madhya Pradesh - demand set aside. Appeal allowed - decided in favor of appellant. Issues:1. Liability to pay Service Tax under the category of Construction of Residential Complex Service for construction activities related to JNNURM Scheme.2. Tax liability for development of plots in slum locality under Valmiki Awas Mission- Baba Saheb Ambedkar Yojana.Analysis:1. The appellant, engaged in construction activities, appealed against the Commissioner of Central Excise (Appeals), Indore's order holding them liable to pay Service Tax for construction of residential units for Indore Municipal Corporation under JNNURM Scheme. The appellant argued that there is a specific exemption under Notification 28/2010 ST for such construction. The Tribunal noted that the construction for EWS JNNURM falls under the exemption, and the appellant was not involved in constructing residential units but in developing plots. The Tribunal referred to a previous order by the Commissioner holding against tax liability for similar activities by the appellant's sister concern. The Tribunal concluded that the tax liability cannot be sustained as per the exemption and set aside the impugned order, allowing the appeal.2. The dispute regarding tax liability for the development of plots in a slum locality under Valmiki Awas Mission- Baba Saheb Ambedkar Yojana was also addressed. The appellant contended that there was no construction involved, only development of cleared slum area for further use. The Tribunal acknowledged that the appellant was not engaged in construction of residential units but in developing the slum area for plotting under an arrangement with the main contractor for the Government of Madhya Pradesh. The Tribunal highlighted that the contract did not involve the construction of residential units, and based on the analysis, concluded that the tax liability against the appellant cannot be sustained. Therefore, the impugned order was set aside, and the appeal was allowed.
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