2013 (9) TMI 1043 - AT - Service Tax

Commercial and industrial construction Service - whether laying of the cable come within Commercial and industrial construction Service or not? - Held that - From the facts on record it does not appeal to common sense that laying of cables by the appellant for BSNL shall be commercial or industrial construction service from reading of the definition. Prima facie it appears that the service provided by the appellant does not come within the fold of law to appreciate incidence of taxation - matter requires reconsideration - appeal allowed by way of remand.

Summary

Issues: Interpretation of the definition of "Commercial and Industrial Construction Service" under Section 65(105)(zzq) read with Section 65(25b) of the Finance Act, 1994.

In this judgment by the Appellate Tribunal CESTAT Bangalore, the issue at hand involves the interpretation of the definition of "Commercial and Industrial Construction Service" under the relevant sections of the Finance Act, 1994. The appellant argues that laying cables does not fall under this definition as it is not related to commercial or industrial construction services. The appellant highlights that any service tax collected from BSNL was duly deposited without any retention by the appellant. On the other hand, the revenue contends that since the appellant collected service tax from BSNL, they should be held liable under the law for the service provided.

Upon hearing both parties and examining the statutory definition of "Commercial and Industrial Construction Service," the Tribunal finds that laying cables for BSNL does not align with the definition provided in the Act. The Tribunal notes that the service provided by the appellant does not seem to fit within the scope of commercial or industrial construction services based on the definition outlined in the legislation. The Tribunal acknowledges the appellant's compliance in paying the service tax collected from BSNL and leaves it to the Revenue to verify this aspect. Ultimately, the Tribunal rules in favor of the appellant, allowing both the stay application and the appeal.

In conclusion, the judgment delves into the nuanced interpretation of the statutory definition of "Commercial and Industrial Construction Service" to determine the applicability of service tax in the context of laying cables for BSNL. The Tribunal's analysis focuses on the specific wording of the definition provided in the Finance Act, 1994, and concludes that the service offered by the appellant does not fall within the ambit of commercial or industrial construction services as outlined in the legislation.