https://www.taxtmi.com/caselaws?id=365640 A composite construction contract involving both material and labour components was treated as a works contract, and the Revenue's objection to exemption denial based on the hospital's alleged commercial character failed because charging some consideration did not by itself negate charitable status. The rebate or abatement for the material component was upheld on the admitted facts, so the Revenue's challenge did not succeed. On penalty, delay in service tax payment caused by financial hardship, loss, pending recovery proceedings and non-receipt of payments from contractees was found to constitute reasonable cause, attracting section 80 and justifying waiver of penalty under section 76. Tax liability and interest remained otherwise unaffected. en-us Thu, 16 Aug 2018 00:00:00 +0530 Sat, 01 Sep 2018 12:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=365640 A composite construction contract involving both material and labour components was treated as a works contract, and the Revenue's objection to exemption denial based on the hospital's alleged commercial character failed because charging some consideration did not by itself negate charitable status. The rebate or abatement for the material component was upheld on the admitted facts, so the Revenue's challenge did not succeed. On penalty, delay in service tax payment caused by financial hardship, loss, pending recovery proceedings and non-receipt of payments from contractees was found to constitute reasonable cause, attracting section 80 and justifying waiver of penalty under section 76. Tax liability and interest remained otherwise unaffected. Case-Laws Service Tax Thu, 16 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=365640