The CESTAT held that the impugned SCN was unsustainable because...

The CESTAT held that the impugned SCN was unsustainable because it failed to specify which taxable category applied to each receipt, and a statement issued under s.73(1A) was invalid where its grounds differed from the earlier SCN; accordingly demands on unspecified receipts were set aside. The Tribunal found the appellant to be a Governmental Authority and, for the years concerned, receipts relating to municipal functions and non-commercial construction are exempt under the relevant mega-notification; composite construction taxability could not be sustained without valuation machinery. Reverse-charge liability for legal services did not attach to the Governmental Authority. Matters concerning taxable commercial construction were remanded for quantification; penalty under s.70 read with Rule 7C was upheld. Appeals partially allowed and remitted.

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