Service tax exclusion for police quarters construction upheld, as identical Tribunal precedent barred tax, interest and penalties.

Construction of residential police quarters on contract basis for the Tamil Nadu Police Housing Corporation was treated as covered by earlier Tribunal decisions on identical facts, which had held such work falls within the exclusion category and is not exigible to service tax. As no fresh ground was shown to depart from that view, the demand, interest and penalties were set aside and the appeals were allowed with consequential benefits, if any, as per law.

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Issues: Whether service tax was payable on construction of residential units, namely police quarters, for the Tamil Nadu Police Housing Corporation on contract basis.

Analysis: The dispute was found to be fully covered by earlier decisions on identical facts. It was noted that a recent decision of the Tribunal had categorically held that construction of such quarters for police personnel falls within the exclusion category and is not exigible to service tax. No fresh ground was shown to depart from that view.

Conclusion: The impugned order confirming the service tax demand, interest, and penalties could not be sustained and was set aside. The appeals were allowed with consequential benefits, if any, as per law.

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