TaxTMI 
TaxTMI 
2016 (8) TMI 590
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....-2009. The party did not respond, but to another letter it responded and submitted that it had not received Service Tax from M/s Varanasi Development Authority, Varanasi and if any service tax is required to be paid notice may be served to M/s VDA, Varanasi for any further details they may be called for as all information were lying with them. Accordingly details were procured from M/s VDA and it so appeared that the services so rendered by the party to the M/s VDA, is covered under the category of "Work Contract Services." The party was constructing civil structures, repairing, doing alteration, renovation or restoration of old structures, completing and finishing job, installation of electrical and electronic devices etc. unde....
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....on 70 of the Act read with Rule 70 of the Rules and further penalty of Rs. 200/- per day was imposed under Section 77(1)(a) of the Act for failure to take registration under Section 69, being aggrieved the appellant had preferred appeal before the Learned Commissioner (Appeals) on the ground that they are registered with Sales tax department under Works Contract and had paid Sale Tax/Trade Tax. Further, the work done by the appellant for Varanasi Development Authority (VDA) is not commercial in nature but are in the nature of Civil Amenities for the general public. In Clause (b) of Section 65(105) (zzzza) its provided the tax is leviable under the classification "Work Contract" only if construction of new building are the civil structure or....
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....ed" for commerce or industry. The information about this has to be gathered from the approved plan of the building or civil construction. Such constructions which are for the use of organizations or institutions being established solely for educational, religious, charitable, health, sanitation or philanthrtopic purposes and not for the purposes of profit are not taxable, being non-commercial in nature. Generally, government buildings or civil constructions are used for residential, office purposes or for providing civil amenities. Thus, normally government construction would not be taxable. However, if such constructions are for commercial purposes like local government bodies getting shops constructed for letting them out, such activity w....
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.... the Govt. itself personally. Hence activities relating to construction of these buildings are under the exclusion clause of the Construction of Complex Service. The issue whether the services are performed by a contractor or a sub contractor is irrelevant here in as much as the construction of Govt. buildings are in any case not taxable service. 13. The works contract services (at the cost of repetition) falling under Construction of Complexes or commercial construction are exempted as per CBEC Circular No. 80/10/2004 dated 17.09.2004 and CBEC Circular 123/5/2010-TRU dated 24.05.2010. 14. Thus, I find that all the services of the appellant related to civil construction under Manageme....