TaxTMI 
TaxTMI 
2026 (9) TMI 1502
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....iled. 3. When the appeal came up for hearing, Learned Counsel for the appellant submits that the appellant is holding service tax registration under works contract service and consulting engineer services. Based on the third party data, investigation commenced and show cause notice was issued alleging that the appellant failed to pay service tax for the activities carried out by them during the period from 01.04.20102011 up to 30.06.2012 under works contract service and thereafter under other services. As regarding demand under Works Contract Service, Learned Counsel drew our attention to the impugned order where it is stated that:- 29.3.1. The service provider has under taken the construction for various trusts like M/s Ajekar Gopal Education Trust, M/s Bharati Seva Mandali Trust M/s Nitte Education Trust and M/s Bhuvanendra College Trust. The details of the agreement and the activities are given in the following table. Name of the Customers Agreement Activities covered under agreement Ajekar Padma Gopal Education trust Agreement dt 20.12.11, 25.11.10 and 05.05.11 Addition to existing school bldg 550/2 Nitte education Trust work order dated 19.1....
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....nnels and dams; 5. Learned Counsel also drew our attention to the Circular No. 80/10/2004-ST dated 17.09.2004 where it is clarified that:- "13.2 The leviability of service tax would depend primarily upon whether the building or civil structure is 'used, or to be used for commerce or industry. The information about this has to be gathered from the approved plan of the building or civil construction. Such constructions which are for the use of organizations or institutions being established solely for educational, religious, charitable, health, sanitation or philanthropic purposes and not for the purposes of profit are not taxable, being non-commercial in nature. Generally, government buildings or civil constructions are used for residential, office purposes or for providing civic amenities. Thus, normally government constructions would not be taxable. However, if such constructions are for commercial purposes like local government bodies getting shops constructed for letting them out, such activity would be commercial and builders would be subjected to service tax". 6. Learned Counsel also drew our attention to the Notifications as in force from 01.07.2012 and as ....
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.... Pvt. Ltd. v. the Assistant Commissioner (CT), Sriperumbudur Assessment Circle, Chennai - 2017 (101) VSP 361 (Mad)". 8. As regarding the demand against the constructions related to Nirmithi Kendra, Learned Counsel submits that 'nirmithi kendra' is a community hall for public in Suratkal, constructed for District Collector of South Canara, Karnataka under the Members of Parliament Local Area Development Scheme (MPLAD) formulated by the Government of India. In this regard, Learned Counsel also drew our attention to the Notification No.MPLAD/CR-22/10-11/52750/P1 dtd. 16.07.2011 and submits that Dakshina Kannada District Administration has established "Dakshina Kannada Nirmithi Kendra" during 1989, located in Suratkal, having governing body Chaired by Deputy Commissioner, Dakshina Kannada district. The MPLAD Scheme is a Central Sector Scheme, fully funded by the Government of India. The main objective of the Scheme is to enable each Member of Parliament (MP) to recommend works of development nature with emphasis on the creation of durable community assets based on the locally felt needs of the people. This Scheme is administered by the Ministry of Statistics and Programme Im....
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.... Said notification clearly brings out that the exemptions provided are for the services rendered in SEZ which are received by a SEZ unit or developer and are used for authorized operations during the relevant period. Instead of paying service tax on the services provided to their customer viz. SE Blades P Ltd, the service provider claimed exemption which is incorrect. It is evident that they do not have any evidence to substantiate to the department their compliance to the said notification. The above acts of the service provider also established that they have relied only on the work orders issued by their client and claimed the exemption without complying with the conditions of notifications. Mere mentioning of the exemption notification does not confer the right to claim the benefit under the said notification unless the conditions stipulated therein are complied with. Under these circumstances, Adjudication Authority rightly deny the exemption benefit claimed by the appellant. Learned AR further submits that as per letter KL:15:07 Suzlon:1B/1793 dated 07.05.2012 issued by Development Commissioner, SEZ, form A, B and C, it can be seen that the name of the appellant (i.e. supplie....
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....so mentioned that the rates were inclusive of cost of labour and material machinery, commission, supervision charges. From the work orders dated 02.09.2011 and 09.09.2011 issued prior to negative list regime, it is observed that the service recipients i.e. trusts have made it clear to the service provider about the service tax factor in the terms and conditions of the work order stating that rates are inclusive of all taxes and the contractor shall pay service tax directly to the government. 15. Heard both sides and perused the records. As regarding demand against the construction for various trusts undertaken by the appellant prior to 01.07.2012, we find that Appellant has constructed school buildings, college buildings and VT training centre, which are not building or civil structure primarily for the purposes of commerce or industry. The Circular No. 80/10/2004-ST dated 17.09.2004, such constructions which are for the use of organizations or institutions being established solely for educational, religious, charitable, health, sanitation or philanthropic purposes and not for the purposes of profit are not taxable, being non-commercial in nature. Hence, these activities are not....