Personal-use exclusion and APMC construction taxability guide service tax treatment of government works contract disputes

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....Residential staff quarters built for Government departments and agencies were treated as intended for personal use, so the demand on those contracts remained dropped. Services for GETCO and other non-commercial Government works were also sustained as non-taxable, including transmission and distribution of electricity works covered by exemption principles. By contrast, construction services for APMC were held taxable for the pre-negative list period because APMC renting or allotting space is commercial in nature under Supreme Court precedent. The extended period was upheld due to non-registration, non-filing, non-payment and suppression, while recomputation had to allow the works contract composition scheme and cum-tax benefit, with penalty to follow the revised demand.....