TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 1268
X X X X Extracts X X X X
X X X X Extracts X X X X
....,86,601 along with interest under Section 75 and also imposed equal penalty and Rs. 200 per day till 09.05.2013. 2. Briefly the facts of the present case are that the appellant have constructed godowns under the work orders awarded by Haryana State Warehousing Corporation (HSWC). HSWC is an undertaking of Haryana Government set up for storage of Post-Harvest Agricultural Produce. The allegation of the department is that the appellant have rendered the Works Contract Service to HSWC and are liable to pay service tax under section 65(105)(zzzza) of the Finance Act, 1994 on the ground that HSWC activities are commercial in nature. On this allegation, a show cause notice dated 02.07.2015 was issued on the premise that the service provided by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry. He further submits that the leviability of service tax under works contract service is dependent upon the purposes for which building or civil structure is constructed and if the purpose is not primarily of commercial or industrial use i.e. not of making profit, the construction service is not taxable under the service category of works contract service. He further submits that in the present case, the Executive Engineer, HSWC in its Letter dated 08.07.2015 addressed to Assistant Commissioner (AE), Central Excise Commissionerate, Rohtak has clearly stated that the Godowns constructed by the appellant for HSWC were constructed with the sol....
X X X X Extracts X X X X
X X X X Extracts X X X X
....wns constructed by the appellant are not for the purposes of commercial or industrial use and thus, even if HSWC's activities are assumed to be of commercial nature, the same will not make the service provided by the appellant liable to service tax under 'works contract service'. 4.3 He further submits that it is a settled legal position that the commercial activities relates to activities having profit as the primary aim and mere collection of fee /charges will not automatically render a government undertaking as a commercial establishment. For this Submissions, he relied upon the following: • M/s Seetha Builders Versus Commissioner of GST & Central Excise, Madurai-2024 (6) TMI 1110-CESTAT CHENNAI •....
X X X X Extracts X X X X
X X X X Extracts X X X X
....CESTAT Chandigarh • Dhananjay G Kela Vs. CST-Ahmedabad-III 2024 (5) TMI 1278 - CESTAT AHMEDABAD. 4.5 The learned Consultant also submits that the appellant is entitled to the benefit of Section 80 of the Finance Act, 1994 and has also submitted that the service tax has been wrongly computed as the benefit of Composition Scheme has not been given to the appellant and cum-tax benefit has also been denied. 5. On the other hand, learned AR reiterated the findings of the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, we find that no doubt the appellant has provided Works Contract Service to HSWC which is a State Government undertaking and has constructed the g....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... State Bijli Nigam, Haryana Police Housing Corporation and Bar Complex in Mini Secretariat, Kaithal. Understandably, these are Public Sector Undertakings having been constituted under an Act of State Legislature. We have also gone through the certificates issued by respective authorities to indicate that the buildings are used for office purposes and not for any commercial or industrial use. We find no reason, whatsoever, to disbelieve the certificates issued by the authorities. Revenue also does not produce any evidence to negate the certificates. In such circumstances, we are of the considered opinion that the said certificates have evidentiary value and are required to be accepted and therefore, it has to be concluded that the activity u....