2012 (4) TMI 443 - AT - Service Tax

Demand of Service Tax on works contract service applicants are engaged in the activity of laying of commissioning of sewage pipeline and other civil works for Nashik Municipal Corporation - Held that - The activity undertaken by the applicant is not for commerce and industry, therefore service tax cannot be demanded - activity undertaken by the applicant is for Nashik Municipal Corporation and as held by this Tribunal in the case of Nagarjuna Construction Co.( 2011 -TMI - 203241 - CESTAT, BANGALORE) that activities, which are concerned with welfare activity for the citizens of this country has been excluded from the liability of Service tax in favour of assessee.

Summary

The Appellate Tribunal CESTAT, Mumbai ruled in favor of the applicant engaged in laying sewage pipeline for Nashik Municipal Corporation. The Tribunal waived the service tax demands, interest, and penalties during the appeal, citing that the activity does not fall under works contract services as per previous case law.