2013 (12) TMI 1611 - AT - Service Tax

Summary

Issues involved: Service Tax demand on construction services u/s 73(1) of Finance Act, 1994 and invocation of extended period of limitation.

Summary:
The Commissioner confirmed a Service Tax demand on the petitioner for providing services related to construction of cottages for Tirumala Tirupati Devasthanams. The petitioner challenged the order on grounds including unwarranted invocation of extended period of limitation and the service not being taxable. The construction of cottages for TTD was argued to be non-taxable as it was not primarily for commerce or industry, as clarified in Budget Circular No. 80/10/2004-S.T. The Board clarified that constructions for educational, religious, charitable, health, sanitation, or philanthropic purposes and not for profit are non-taxable. The scope of taxable/works contract service under Section 65(105)(zzzza) was analyzed, leading to the conclusion that construction of cottages for TTD is not a taxable service. The issue of whether the accommodation provided by TTD for promoting Hindu religion amounts to a business of promoting religion was left for further examination. The waiver of pre-deposit was granted, and further proceedings were stayed pending the appeal's disposal.