https://www.taxtmi.com/caselaws?id=775071 The CESTAT New Delhi allowed the appeal challenging service tax demand on construction services. The appellant constructed a residential complex for a housing board and an office building for a power distribution company. The Tribunal held that construction services for a semi-government electricity distribution entity were not liable to service tax as the building served public utility purposes rather than commercial activities. Additionally, services related to electricity transmission and distribution were exempt under Board Notifications. The Tribunal referenced CBIC Circular clarifying service tax leviability depends on usage nature and cited precedent establishing that construction activities for electricity transmission/distribution cannot sustain service tax demands. Consequently, non-filing of ST-3 returns was justified, and the show cause notice was deemed unmaintainable. en-us Thu, 17 Jul 2025 00:00:00 +0530 Sat, 19 Jul 2025 08:25:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775071 The CESTAT New Delhi allowed the appeal challenging service tax demand on construction services. The appellant constructed a residential complex for a housing board and an office building for a power distribution company. The Tribunal held that construction services for a semi-government electricity distribution entity were not liable to service tax as the building served public utility purposes rather than commercial activities. Additionally, services related to electricity transmission and distribution were exempt under Board Notifications. The Tribunal referenced CBIC Circular clarifying service tax leviability depends on usage nature and cited precedent establishing that construction activities for electricity transmission/distribution cannot sustain service tax demands. Consequently, non-filing of ST-3 returns was justified, and the show cause notice was deemed unmaintainable. Case-Laws Service Tax Thu, 17 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775071