2014 (11) TMI 629

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....ried Accommodation Project for Military Engineering Services (MES) which involved construction of residential quarters for military personnel during the period from January 2007 to March 2011 as sub-contractor. The department entertained a view that this is a taxable service and issued show-cause notice demanding service tax of Rs. 13,73,472/- under construction of complex service (Sec. 65(105)(zzzh) January 2007 to May 2007) and Rs. 1,91,37,018/- under works contract service (Sec 65(105)(zzzza) - from June 2007 to March 2011). The learned adjudicating authority vide order-in-original No. 23/2012 Hyd-III-ST-Adjn dated 14.12.2012 held that the complex is not intended for sale, but for personal use by the military and dropped the demand for t....

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....e to them. 4. We have considered the submissions made by both sides. The definition of works contract as in sub-clause (zzzza) of Section 65 (105). Provides as follows:                 (zzzza) to any person, by any other person in relation to the execution of a works contract, excluding works contract respect of roads, airports, railways transport terminals, bridges, tunnels and dams. Explanation. - For the purpose of this sub-clause, works contract means a contract wherein,- Transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and such contract is for the purposes of carrying out, - (a) erection, commi....

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....ly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person. 5. The reproduced definitions show clearly that even under works contract service, we have to go to the definition of residential complex to see what exactly was meant by residential complex. The definition of works contract service does not explain what is residential complex. Therefore, whether the service is works contract service or residential complex service, the principles to be considered are one and the same. 6.  When a residential complex is built for use of the Govt whether it is by a sub-contractor under a main contractor or otherwise, end use is what is requi....