2022 (9) TMI 535

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....Act, 2017, is against the order dated 19.08.2021 in Service Tax Appeal no.70671 of 2016 passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Allahabad. The respondent is a registered contractor with the service tax department. The issue is about the demand of service tax under the head-"work contract services" for construction of boundary wall, godown, shops, toilets, roads, sanitation, water reservoir, drinking water supply, sewage treatment plant etc, the services carried out for Rajya Krishi Utpadan Mandi Parishad, (a statutory authority created by the U.P. Krishi Utpadan Mandi Adhiniyam, 1964) on the plea that the respondent contractor is covered under Clauses-12 and 13 of the Mega Exemption Notification no.12/20....

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....e Krishi Utpadan Mandi Samiti falls within the definition of Government Authority under Clause 2(s) of the exemption notification which reads as under:- "2.(s) "governmental authority" means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W of the Constitution." A Government Authority or any body as defined in Clause 2(s) is entitled for exemption under Clause-12. The Krishi Utpadan Mandi Samiti is established by an Act of the State Legislature to provide for the regulation of sale and purchase of agricultural produc....

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....ernmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of- (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;" Reliance has been placed on the decisions in Shapporji Paloonji and company Pvt ltd vs C,C C.Ex & S.T. Patna reported in 2016 (42) S.T.R. 681 (Pat), Bharat Bhushan & Company vs State of Haryana reported in 2016 (44) S.T.R 195 (P &H) and in Krishi Upaj Mandi Samiti vs Commissioner of C. Ex. & S.T., Alwar reported in 2022 (58) G.S.T.L. 129 9S.C) to substantiate these submissions. Having heard learned counsels for the partie....

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....o exercise superintendence and control of the markets. The construction of markets in the Mandi area can not be termed as business activity. The renting/leasing of the shops, market sheds etc for consideration is another method of regulation of the Mandi area. By leasing/renting of market sheds, the activities of Samiti cannot be categorized as commercial/business activity. Reference be made to the decision of the Apex Court in Krishi Upaj Samiti(supra) which demonstrates that even the Apex Court has noted that the Exemption Notification provides for exemption of such activities carried out by the Krishi Utpadan Mandi Samiti. In Bharat Bhushan Company vs State of Haryana (supra) wherein contract was awarded for construction of flat....