Appellant's Services to Jaipur Development Authority Not Works Contract; Tax Liability Upheld

The Tribunal upheld the lower authorities' decision that the services provided by the appellant to Jaipur Development Authority did not qualify as 'Works Contract Services' but rather as 'Commercial or Industrial Construction Service'. The appeal was dismissed, affirming the liability for service tax on the work orders executed during 2006-07 to 2008-09.

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Issues:
Dispute regarding service tax liability on work orders executed by the appellant for Jaipur Development Authority during 2006-07 to 2008-09 under the category of 'Commercial or Industrial Construction Service' (CICS) or 'Works Contract Services'.

Analysis:
The appellant executed two work orders for the Jaipur Development Authority involving finishing work related to Automatic sliding door at Rajasthan State Co-operative Bank Head Office building and fixing of doors & windows with pre-laminated particle board/decorative lamination. The Department contended that the services rendered were liable to service tax under 'Commercial or Industrial Construction Service' (CICS). Both lower authorities upheld the demand of service tax. The appellant argued that the work orders fall under 'Works Contract Services' and are liable to service tax only from 01.06.2007. The Revenue justified the impugned order, stating that the work orders were for finishing works and not works contracts. After hearing both parties, the Tribunal noted that the nature of the activity was finishing services, and the work orders did not include supply of material along with service, thus not meriting classification under 'Works Contract Service'.

The Tribunal found no reason to interfere with the impugned order, which was sustained for the reasons mentioned therein. Consequently, the appeal filed by the appellant was dismissed.

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