2017 (10) TMI 439

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....ud both of Amravati District. The show cause notice was issued contending that service provided by the appellant is classifiable as Commercial or Industrial Construction under Section 65(25B) of the Finance At, 1994 and the service provider of these services has to pay service tax under Section 68 of the Act at the rate specified under Section 66 of the said Act. Accordingly, show cause notice was issued demanding service tax alongwith interest and proposing penalty. The adjudicating authority confirmed demand alongwith interest and imposed equal penalty, penalties under Section 76, 77 and 78 were also imposed therefore appellant are before us. 2. Shri. D.H. Nadkarni, Ld. Counsel for the appellant submits that construction was done by the ....

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....karia Ltd Vs. Commissioner[ 1999 (112) ELT 353 (S.C.)]. 3. On the other hand, Shri. B Kumar Iyer, Ld. Superintendent(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that as per the definition of Commercial or Industrial Construction service, constructed building if it is used for commercial purpose then it will be taxable there is exception provided in the definition for building constructed for charitable organization. He further submits that the building constructed by the appellant is used for carrying out for trading activity of agriculture produce, therefore there is no dispute that the building per say is used for Commercial activity, accordingly, the construction service provided by....

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.... is not the requirement of Section 12A or 12AA that the trust or institution should be registered with the Charity Commissioner. It was also pointed out that as per expln 1 to Section 13 of the IT Act, 1961 for the purpose of Sections. 11, 12, 12A and this Section (i.e., Section 13) "trust" includes any other legal obligation also. Thus any trust, institution or any other legal obligation is entitled to registration under Section 12A/I2AA if its objects are of charitable nature as defined in Section 2(15) of IT Act, 1961 and its activities are genuine. So there is no need of that the APMC is not governed by Mumbai Public Charitable Trust Act, 1950 Noticee referred to following judgments in support of their above contention. * CIT v. Sura....

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....ass identifiable by some common quality of public or impersonal nature. The object for being charitable need not be for the benefit of whole mankind. (ii) The object of promoting, protecting and providing facility to agriculturist or a particular section or class of traders would be an object of general public utility. (iii) The object should not be propelled by profit motive. So long as the purpose does not involve the carrying on any activity for profit, the requirement of the definition would be met and it is immaterial, how the monies for achieving implementing of such purposes are found whether by carrying on activity for profit or not. (iv) The definition of the words "charitable purpose" is very wide and inclusive. (v) If....