2017 (8) TMI 518

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....ged in activity of construction for APMC and for CWC Warehouse located in Railway side. 2.1. Ld. Counsel argued that in so far as APMC is concerned the same statutory body established to assist the farmers in sale and purchase of their produce. He argued that APMC is taxable in nature and therefore no service tax under the head of Commercial or Industrial Construction can be levied on the same. In support of his claim that APMC a charitable organization to relied on the decision of Hon'ble High Court in their own case in the case of Income Tax Appeal No. 4/2006 and the order dt. 28.3.2007. He further argued that the contracts with APMC are inclusive of material and therefore works contract therefore no service tax could levied on the work ....

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....t. 27.4.2012 4. When examined with reference to its constitution and functions, the services provided by APMC out of the market fee collected from the licensees, do not appropriately fall under the category of BSS. The distinction between BSS and BAS is explained in the instructions dated 28.02.2006 issued from F.No.334/4/2006-TRU. In the light of the above instruction, the service provided by APMC out of the market fee is not in the nature of outsourced service . It is not possible to hold that the licensees have outsourced the development and maintenance of agricultural market to the APMC, which could have been otherwise undertaken by them, solely in their business interest. Development and maintenance of agricultural market infrastructu....

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....gious, charitable, health, sanitation or philanthropic 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 civic amenities. Thus, normally government constructions 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 would be commercial and builders would be subjected to service tax." In view of above, the activities of APMC in respect of these contracts are not commercial in nature. Thus these contracts are not covered under the purview of commercial and industrial cons....