AI Drafter 
TaxTMI 
TaxTMI 
2025 (4) TMI 316
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.... (zzzza) of the Finance Act, 1994 The Act. An intelligence was gathered by Preventive Branch, Bhopal that service tax liability was not being discharged by the appellant. As per the balance sheet for the year 2013-2014 and 2014-2015 and the copies of the agreement with their customers, the appellant was providing taxable services to various builders for providing civil work like construction of WBW road, CC Road, sewer line, Water Supply drainage, Sump Well, Overhead Tank, Septic Tank, Boundry Wall, Entrance Gate and garden, etc. These services were provided in the private colonies developed by such builders. As per agreement, the appellant provided WCS for construction of the above stated work for the builders within a residential complex/commercial premises. On scrutiny of Balance Sheet for the period from 2011-2012 to 2014-2015, it revealed that appellant had received 27,17,19,803 (inclusive of service tax) from their customers for which they had failed to discharge their service tax liability on net amount of Rs.25,90,51,658/- received by them out of which total taxable value was calculated to tune of Rs.10,36,20,663/- on which service tax of Rs.1,26,68,147/- (including cess) h....
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....ation for use by general public." 2.................. (q)"general public" means the body of people at large sufficiently defined by some common quality of public or impersonal nature; 6. The submission of the learned counsel for the appellant is that the roads constructed within a residential/commercial premises would be used by the residents as well as by the outsiders visiting the premises. Therefore, it is not correct to say that the roads constructed were not meant for use by "General Public" as enunciated in the notification and further as per the definition of the term "General Public". According to the learned counsel, the appellant is entitled to exemption under the aforesaid notification. The learned counsel has also referred to the decisions in the following cases:- (a) United Rail Road Consultants Pvt. Ltd. Vs. CCT, Secuderabad 2021 (45) GSTL 290 (Tri.-Hyd.) (b) Murari Lal Singhal Vs. CCE & ST, Jaipur-I 2019 (25) GSTL 45 (Tri.-Del) (c) Commissioner of Customs & C.Ex, Raipur Vs. National Project Construction Corpn. Ltd. 2020 (42) GSTL 75 (Tri.-Del.) 7. Per contra, the learned Authorised Representative for the Department h....
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....tion and, therefore, "WCS" became taxable as "service" without reference to the specific head "WCS". The expression "Works Contract" has been defined under Section 65B(54) as under:- "(54) "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 purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alternation of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property." 10. Considering the provisions of Section 65B(54) defining "Works Contract", it is clear that the construction of roads are not specifically excluded therein. It is by virtue of notification no.25/2012 that the construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of roads is exempted from levy of service tax, provided, which are used for "general public" since the exemption provided under the notification for construction of roads is very specific, we need to exam....
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....ause (q) of the notification defines "general public" meaning the body of people at large sufficiently defined by some common quality of public or impersonal nature. We have no doubt on the intent and the scope of the notification exempting the construction of roads for use by general public and as per the Rules of interpretation the exemption notification has to be construed strictly. Considering the activity of construction of roads by the appellant for the development of the township/residential complexes on behalf of the builders/ developers is specifically meant for the buyers of the plots/residential/commercial complexes and the same cannot be termed for the use of the general public in the sense it has been provided in the notification. Hence the appellant is not entitle to claim exemption from levy of service tax under the notification. 11. In addition to the notification, we find that CBEC had issued Master Circular D.O.F. No. 334/1/2012-TRU dated 16.03.2012 where it has been clarified that construction of roads for use by general public is exempt from service tax. Construction of roads which are not meant for general public use e.g. construction of roads in a fac....
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....fied with the IT department as well as Commercial Tax since the matter originated by Commercial Tax. d. The party could not produce any evidences including invoices /bills/contract raised with their customers to substantiate the activity being undertaken by them (type of service) and to substantiate the liability assessment under Reverse Charge Mechanism. Here also theparty kept the department in dark. e. In view of the foregoing facts and reliability of the Balance sheets (No return +Bal Sheet filed with Income Tax), it was mandatory for the department to safeguard Government Revenue by taking sales figures during the year, Advances received from customers, work inprogress and closing stock together for ascertainment of service tax liability for the years 2011-12 to 2014-15. Moreover, the party had not filed service tax returns (ST 3) at all assessing their own taxable value and liability which was a statutory requirement. The case was found to be an attempt of complete eyewash. f. The department exhausted all steps and actions to procure the documents required for the completion of the investigation. The party was so elusive that no reply to the SCN was....