2014 (12) TMI 1005 - AT - Service Tax

Construction activity - primarily for commercial or industrial purposes or not - Held that - Prima facie, we are not inclined to the view that activities of HAFED or Haryana Seeds Development Corporation are non-commercial. Further there is neither any pleading or material on record nor any submission by the petitioner before us to identify any error in the adjudication order in so far as the valuation or classification recorded by the adjudicating authority in respect of site formation. - stay granted partly.

Summary

Issues:
1. Alleged failure to remit service tax on taxable services provided.
2. Exclusion of services from the scope of taxable service.
3. Confirmation of service tax demand by the Commissioner of Central Excise.
4. Claim for waiver of pre-deposit and assessment of penalty.
5. Exclusion of works executed for specific bodies from tax liability.

Analysis:
1. The case involved allegations against the appellant for not remitting service tax on two categories of taxable services provided during specific years. The Show Cause Notice proposed a substantial tax levy along with interest and penalties based on the gross consideration received for these services.

2. The appellant contended that one category of service provided to Government or Public Sector Undertakings was excluded from taxable services as they were not primarily for commercial or industrial purposes. Regarding the other service category, the appellant claimed exclusion under specific clauses related to agriculture, irrigation, or renovation activities.

3. The adjudication order by the Commissioner confirmed a significant service tax demand along with interest and penalties. The order detailed the services provided, recipients, and reasons for excluding certain services from tax liability based on the purpose and nature of the constructions.

4. The court examined the impugned order to consider the appellant's request for waiver of pre-deposit. The authority had excluded some services from tax liability based on the purpose of construction. However, services related to site formation were assessed for tax as the appellant failed to prove exclusion under relevant clauses.

5. The appellant argued that works executed for specific bodies like HAFED and Haryana Seeds Corporation should be excluded from tax liability due to their public service nature benefiting farmers. The court found no prima facie case to support the exclusion, stating that there was no evidence or pleading to identify errors in the adjudication order regarding the valuation or classification of site formation services.

In conclusion, the court directed the appellant to deposit the assessed service tax and interest within a specified period, granting waiver of pre-deposit for the penalty amount. Failure to comply would result in the dismissal of the appeal. The court found no grounds to support the appellant's claims regarding the exclusion of certain services from tax liability, emphasizing the lack of evidence or arguments to challenge the adjudication order's findings.