Tribunal sets aside demands for Site Formation and Construction Services, no service tax, penalties dismissed.

The Tribunal allowed the appeal, setting aside the demands for "Site Formation Services" and "Construction of Residential Complex Services." As no service tax was payable, penalties were not imposed, resulting in the dismissal of the Revenue's appeal.

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Issues involved: Appeal against the order demanding service tax under "Site Formation Services" and "Construction of Industrial & Commercial Services" by invoking extended period of limitation.

Site Formation Services Issue:
The appellant, a Public Sector Undertaking, executed a comprehensive contract for mining coal with Eastern Coalfields Limited. The Tribunal held that the activity is in relation to mining of coal and not site formation, citing precedents where similar activities were classified under "Mining Service." Consequently, the demand for service tax under "Site Formation Services" was set aside.

Construction of Residential Complex Services Issue:
The appellant also executed works contracts for construction projects, supplying materials along with services. The Tribunal classified this service as "Works Contract Service" based on legal precedents, where it was clarified that the Finance Act taxes service contracts simpliciter and not composite works contracts. As no demand was made under "Works Contract Service," the demand for service tax under "Construction of Residential Complex Services" was deemed unsustainable.

Conclusion:
The Tribunal allowed the appeal filed by the appellant, setting aside the demands for both "Site Formation Services" and "Construction of Residential Complex Services." As no service tax was payable, the question of imposing penalties did not arise, leading to the dismissal of the Revenue's appeal as well.

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