TaxTMI 
TaxTMI 
2018 (12) TMI 1788
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....course of scrutiny of the financial accounts of the appellant have observed that the gross receipt for the relevant period of the appellant were at Rs. 5,28,09,515/-, however, it was observed that the taxable value declared by the appellant in their ST-3 return were only Rs. 1,18,08,479/-. After necessary enquiries, a show cause notice dated 2 May 2014 was issued to the appellant, whereunder service tax amounting to Rs. 11,87,507/- was demanded from the appellant for the period 2012-2013 by invoking the provisions of Section 73 (1) of the Finance Act, 1994, the penal provision under Section 76 were also been invoked. The matter was adjudicated vide order dated 29 April 2015 by the learned Joint Commissioner, whereunder the demand of service....
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....been argued that the second component of service tax demand pertains to the receipt for the financial year 2012-2013 for the construction work undertaken by the appellant for M/s Central Warehousing Corporation. It has further been argued that the contract for construction of godown for Central Warehousing Corporation was a composite contract involving not only the element of the service but also the transfer of the property in execution of such contract as per the terms of the contract and in view of Hon‟ble Supreme Court judgment in the case of Commissioner of Central Excise & Customs, Kerala vs. Larsen & Toubro reported in 2015 (39) S.T.R. 913 (S.C.), the activity where the transfer of the property as well as service element are in....
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....vice though in fact the service provided by them falls under the category of work contract service and on which as being an individual service provider the 50% of the service tax was to be paid by the corporate body namely M/s Central Warehousing Corporation. 4. We have also heard learned Departmental Representative who has reiterated the findings as given in the order-in-appeal. 5. Having heard both the sides and on perusal of the appeal record, we find that primarily there are two issues before us to decide ; firstly, whether the service tax has wrongly been demanded on the amount received by the appellant for providing a construction service to M/s Devi Shakuntala Thakral Charitable Foundation for construction of college building; se....
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....ion 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". It is very much clear in para 13.2 of the said circular that, constructions service which are for the use of organizations or institutions being established solely for educational are not taxable, being non-commercial in ....
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.... your honour that w.e.f. 1 July 2012, as per Sl. No. 9 and condition no. (v) of the Notification No. 30/2012-ST the appellant is liable to pay only 50% of the total service tax liability for the invoices raised to M/s Central Warehousing Corporation and Central Railside Warehousing Company Limited. The relevant extract of Notification No. 30/2012 is reproduced hereunder : (v) provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons,....
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.... provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business Nil 100% (b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business 60% 40% 8. in respect of services provided or agreed to be provided by way of supply of manpower for any purpose 25% 75 % 9. in respect of services provided or agreed to be provided in service portion in execution of works contract 50% 50% 10. in respect of any taxable services provided or agreed to be provided....