TaxTMI 
TaxTMI 
2014 (2) TMI 1221
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.... customers, appellants entered into individual contracts with the clients. Contract is on the basis of total area to be painted inclusive of material and labour. The paints are supplied by M/s. Asian Paints Ltd., which are in turn used for painting. There are three types of activities undertaken : (a) Painting of commercial complex, (b) Painting of residential complex, (c) Individual flats/houses In respect of commercial complexes and residential complexes, the appellants treated the service as works contract and paid VAT as well as Service Tax by opting for composition scheme. However as regards painting of individual flats, appellants pai....
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....me is proper and correct. Painting of individual residential units is not covered under the definition. Once works contracts are separately taxable, it follows that other categories like management maintenance or repair service would cover only non-works contract activities. Extended period is not invokable and penalty is not imposable. Learned A.R. reiterates the findings in the adjudication order. 4. We have considered the submissions. 5. The definitions of "commercial or industrial construction service", "construction of complex service" and "works contract" are as under : "Commercial or industrial construction" means - (a) Construction of a new building or a civil structure or a ....
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.... in the execution of such contract is leviable to tax as sale of goods, and (ii) Such contract is for the purposes of carrying out, - (a) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or (b) construction of a new building ....
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....nd there can be water seepage etc. Moreover, renovation or restoration is also covered and the definition also used the word "similar services". There could be a view that painting can be covered under renovation and restoration also as far as the walls of the building are concerned. Moreover, the learned counsel also relied upon the Circular issued by the Board when the tax was introduced. In Circular No. B1/6/2005/TRU, dated 27-7-2005 in Para 16.3, the following clarification was issued : "Maintenance is to keep a machine, building, etc. in good condition by periodically checking and servicing or repairing. While repair is a one time activity, maintenance is a continuous process of which repair may be incidental or ancillary". ....