AI Drafter 
TaxTMI 
TaxTMI 
2019 (3) TMI 1439
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....ed period of limitation for the demand of service tax for the period 2007-08 to 2010-11 on the various services rendered by them under the contracts awarded, and show-cause notice dated 23.04.2013 was issued for the demand of differential service tax for the period 2011-12 to 2012-13. The main allegation in the show-cause notices is that they had not discharged the service tax liability on the amount received as consideration by them from customers like temple institutions at Srisailam, Kanipakam and Vijayawada Kanakadurga temple, Govt Authorities like Center for Development of Advanced Computing (C-DAC), Nuclear Fuel Complex (NFC) and A.P. Health Medical and Housing infrastructure Development Corporation (APHMHIDC) and ICFAI. Appellant contested the show-cause notice on merits arguing that these services during the period, prior and post 01.07.2012, are not for primarily commerce and industry and services and rendered to institutions, are exempted. The adjudicating authority after following due process of law confirmed the demands raised along with interest and also imposed penalties. 3. Learned counsel Shri Narayanaswamy Naidu and Shri M.V.S Sridhar appeared for the appellants....
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....ion in respect of APHMHIDC which is primarily used by the Govt of Andhra Pradesh for construction of medical institutions and quarters for the staff in rural and semi-urban areas and also for storage of medicines in hygienic conditions, procurement and distribution of drugs, surgical and consumables and equipment. He would submit that these facts have not been considered by the adjudicating authority in a correct perspective and has confirmed the demands raised even though construction activity of these buildings are not primarily for commerce and industry. As regards the service tax demand on the buildings constructed for ICFAI, it is the submission that an identical issue came up before the Tribunal in the case of VIJ Construction Pvt Ltd Vs CCE New Delhi [2018(11)GSTL 169 (Tri-Del) wherein the Tribunal held that construction of buildings for sports activities and buildings used by ICFAI being recognised university for education, the buildings constructed are not for commercial purposes. He would submit that the said decision covers the issue in their favour. He also relies upon the decision of the Tribunal in the case of Centre for development of Advance computing Vs CCE Bangalo....
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....eiterates the findings of the adjudicating authority. As regards C-DAC, it is the submission that the services rendered to C-DAC by various other service providers are taxable is very clear from the various tenders floated by C-DAC. He would submit that in one of the tenders floated for providing manpower and housing services, the tender specifically stated that it is taxable. It is his proposition that if the services rendered to C-DAC are taxable, the building constructed by the appellant would also be taxable. and submits that it is a profit making corporation. As regards ICFAI it is the submission that the said building is constructed by the appellant for educational institutions which is primarily for commerce or industry. He submits that the impugned order is correct and legal and does not require any interference. 6. Heard both sides and perused the records. 7. The undisputed facts in the case in hand are appellant herein had rendered the services in respect of works contract services during the period 2007-08 to 2010-11 and 2011-12 to 2012-13. They were issued two show-cause notices for the period. One by invoking extended period for the demand of the differential ser....
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....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, 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 elated 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 or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or (c) Construction of a new residential complex or a part thereof; of (d) Completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c) or (e) Turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;" (emphasis suppl....
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....toried complex) for the purpose of public use in a religious institution, in the absence of any further evidence to show that these guest houses are allotted to non-pilgrims as a hotel accommodation services, for those visiting the temple, we have to hold that the said services would fall under exclusion clause of works contract services and tax liability does not arise. For the period post 01.07.2012, Mega-exemption Notification No 25/2012-ST dated 20.06.2012 at Sl No 13 (c) exempts the tax liability on a building owned by an entity registered under Section 12 AA of the Income Tax Act 1961 and meant predominantly for religious use by general public. This exemption clearly covers the case of the appellant post 01.07.2012 as it is undisputed that appellant is registered with the income tax authorities under Section 12AA as a charitable institutions for the period pre and post 01.07.2012. The exemption granted by Notification No 25/2012 ST (13) (c) would apply in full force. Accordingly, the demand of the service tax on the services rendered of works contract services to the religious institution does not survive and are liable to be set aside as we do so. 11. As regards demands r....
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....contract services are not taxable pre or post 01.07.2012. 12. As regards the service tax liability on the buildings constructed for ICFAI, we find that the issue is no more res integra as the Tribunal in the case of VIJ Construction Pvt Ltd Vs CCE New Delhi [2018(11) GSTL 169 (Tri-Del)] was considering the very same issue of taxability of the services for construction of buildings for ICFAI and in paragraph No. 6 has held that in regard to campus for ICFAI University Dehradun, the buildings are for use of a recognised university for education and the same cannot be considered as commercial buildings. ICFAI University is having pan India presence, operating in various campuses, it has to be considered as an educational institution, as per the ratio of the decision of the Tribunal in the case of VIJ Construction Pvt Ltd (supra). Accordingly, the service tax liability on the construction of buildings for ICFAI Bangalore, Jaipur and Hyderabad for the period pre and post 01.07.2012 is unsustainable and liable to be set aside and we do so. 13. Learned A.R. has placed reliance on the judgement of the Hon'ble High Court of A .P. and Hyderabad in the case of Tirumala Tirupathi Devasth....