TaxTMI 
TaxTMI 
2019 (5) TMI 1099
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....ercial Construction Service" for construction of compound wall of M/s Bharat Dynamics Limited at Gajuwaka, Visakhapatnam. The department was of the view that construction services rendered by appellant to M/s Bharat Dynamics Limited are subject to levy of service tax. A show cause notice was issued to them proposing to reject the refund claim, alleging that the service recipient is a commercial concern and therefore the service tax paid is in order. After due process of law, the original authority rejected the refund claim against which an appeal was preferred before the Commissioner (Appeals), who vide order impugned herein upheld the order passed by adjudicating authority, rejecting the refund claim. Hence this appeal. 2. On behalf of t....
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....rt of the factory. Further the factory is selling the goods to the Defence of India which is a commercial activity. Therefore the refund has been rightly rejected by the authorities below. 4. Heard both sides. The appellant is aggrieved by the rejection of the refund claim to the tune of Rs. 3,36,718/-. On perusal of records as well as after consideration of the submissions, we find that the appellant had rendered the services to M/s Bharat Dynamics Limited which is a Public Sector Undertaking under the Ministry of Defence. The Annual Report of Ministry of Defence for the year 2011-12 reads as under: "Over the years, the Department of Defence Production has established wide ranging production facilities for various defence equipment th....
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...., the Ordnance Factories and Defence PSUs have been continuously modernizing and upgrading their capabilities and widening their product range. They have also developed a large number of major products on their own apart from developing capabilities in various fields through transfer of technology. 7.4 The production and turnover of Ordnance Factories and Defence PSUs have been increasing steadily, in response to the increasing requirements of armed forces. Details of turnover for the last four years are given in Table 7.1. Table 7.1 YEAR Total Sales Ordnance factories Total Sales Public Sector Undertakings Grand Total (Rs. In Cr.) 2007-08 6937.81 16740.25 23678.06 2008-09 7229.31 20403.64 27632.95 2009-10 8715.2....