2026 (5) TMI 198

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s. 10,000/- under Section 77(1) A of the Finance Act, 1994. 2. The facts of the case are as under: The appellant is providing construction services to the government of West Bengal namely Bidhannagar Municipality, Kolkata Metropolitan Development Authority, State Marketing Board, Municipal Affairs Department and Kolkata Metropolitan Water and Sanitation authority. The appellant submits that construction services provided by the appellant to the government of West Bengal is not for any commercial purposes. During the impugned period 29-02-2012 to 30-08-2013, the appellant constructed residential buildings for the Government of West Bengal, Urban Development Department which is excluded from the definition of 'Residential Complex....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es Rs.56,21,267/-and confirm demand of Rs.4,82,010/- together with penalty Rs10,000/- under section 77 (1) (a) and penalty of Rs.4,82,010/- under Section 78 (1) of the Act. • The appellant being dissatisfied and aggrieved prefer the instant appeal. 3. The Ld. Counsel for the appellant submits that the demand that the demand has been confirmed on amount of Rs. 4,28,305/- on the construction of government residential building which are exclusively for own use is excluded from "residential complex" under Section 65(91a) of the Act during the period 29.02.2012 to 30.06.2012 as exempted under serial (12)(a) of the Notification number 25/2012-ST dated 20-06-2012 during the Negative List regime, therefore, the said demand is not su....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..../- has been confirmed. The said activity has been clarified by the CBEC Circular dated 27.07.2025. For better appreciation of the fact the same is extracted here below: ANNEX 98.2 (Para 98.2 1) DEPARTMENTAL CLARIFICATIONS ON SITE FORMATION AND CLEARANCE, EXCAVATION, EARTHMOVING AND DEMOLITION SERVICES CIRCULAR F. NO. B1/6/2005-TRU, DATED 27-7-2005 | EXTRACT] 6.1 Any service provided or to be provided to any person, by any other person, in relation to site formation and clearance, excavation and earthmoving and demolition and such other similar activities is leviable to service tax under sub-clause (zzza) of section 65(105) of the Finance Act, 1994. "Site formation and clearance, excavation and ea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ST dated 7/6/2005 exempts this service provided in the course of construction of roads, airports, railways, transport terminals, bridges, tunnels, dams, major and minor ports. 10. As the said activity undertaken by the appellant is exempt in terms of Notification No. 17/2005 ST dated 7.06.2005. Therefore, we hold that no Service Tax is payable by the appellant. In view of the above description whole of the demand of the Service Tax is set aside. Consequently, no demand is sustainable against the appellant. 11. Therefore, we set aside the impugned order qua demanding Service Tax from the appellant and drop the penalty imposed on the appellant. With these terms, appeal is allowed with consequential relief, if any. (Operative part of the....