Applicabilty of Notification 17/2005

[Venkateswararao Sunkara]

Can we apply exemption from levy of service tax vide Notification No. 17/2005, If a construction company hired machinery, consultancey and other related services for site clearance etc as per Notification No. 17/2005-ST (Notfication and defination re produced here under) In exercise of the powers conferred by sub-section (1) of section 93 of the  Finance Act, 1994, (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the site formation and clearance, excavation and earthmoving and demolition and such other similar activities, referred to in sub-clause (zzza) of clause (105) of section 65 of the Finance Act, provided to any person by any other person in the course of construction of roads, airports, railways, transport terminals, bridges, tunnels, dams, ports or other ports, from the whole of service tax leviable thereon under section 66 of the said Finance Act. 2. This notification shall come into force on the 16th day of June, 2005. F. No. B1/6/2005-TRU Ajay Under Secretary to the Government of India cified in Sec.65(105)(ZZZA) “site formation and clearance, excavation and earthmoving and demolition” includes, — (i) drilling, boring and core extraction services for construction, geophysical, geological or similar purposes; or (ii) soil stabilization; or (iii) horizontal drilling for the passage of cables or drain pipes; or (iv) land reclamation work; or (v) contaminated top soil stripping work; or (vi) demolition and wrecking of building, structure or road, but does not include such services provided in relation to agriculture, irrigation, watershed development and drilling, digging, repairing, renovating or restoring of water sources or water bodies;

AI Summary

Exemption under Notification No. 17/2005 applies only to specific construction-related activities like excavation and demolition. A query was raised regarding the applicability of Notification No. 17/2005, which exempts certain site formation and clearance activities from service tax under the Finance Act, 1994. The notification covers activities like excavation, earthmoving, and demolition related to construction projects such as roads and airports. A respondent clarified that the exemption is specific and cannot be extended to unrelated services. However, if the construction company's activities align with those specified in the notification, such as hiring machinery for site clearance, they may qualify for the exemption.