2016 (10) TMI 279 - AT - Service Tax

Service tax liability - management, maintenance or repair services for maintaining tubewal, street lights and fountains by Municipal Council, Nangal - Held that - it is found that as per section 98(1) of the Finance Act, 1994 the exemption has been granted in respect of, management, maintenance or repair service to non commercial government building. Therefore, the issue is before us for consideration is that whether Tubewal, Street lights or Fountains do qualify as government building or not. Admittedly, building has not been defined under CEA, Rules or Notification therein. Admittedly, street lights, fountains and tubewal are not building parts in common parlance. Therefore, the management, maintenance or repair service of fountains, tubewal and street lights do classify under the management, maintenance or repair service. - Decided against the appellant

Summary

Issues:
1. Liability to pay service tax for management, maintenance, or repair services provided to Municipal Council, Nangal.
2. Interpretation of the definition of "building" in relation to service tax liability.
3. Qualification of Tubewal, Street lights, and Fountains as government buildings for exemption under Section 98(1) of the Finance Act, 1994.

Analysis:
1. The appellant contested the demand for service tax, arguing that they provided maintenance and repair services for non-commercial government buildings owned by the Municipal Council, Nangal. They relied on a TRU letter stating that such services were not taxable until the negative list came into force. The appellant also referenced various definitions of "building" from different statutes to support their position.

2. The respondent, however, opposed this argument, claiming that services related to Tubewal, street lights, and fountains did not fall under the definition of "building" and thus, the appellant was liable to pay service tax. The Tribunal considered both sides' submissions and focused on determining whether the appellant was liable to pay service tax for managing, maintaining, or repairing Tubewal, street lights, and fountains.

3. The Tribunal examined the definition of taxable service for management, maintenance, and repair services under Section 65(105)(zzg) and the definition of "management, maintenance, or repair" under Section 65 of the Act. Additionally, they analyzed the exemption provided under Section 98(1) of the Finance Act, 1994 for management, maintenance, or repair services to non-commercial government buildings.

4. The Tribunal noted that the term "building" was not defined under relevant statutes, rules, or notifications. They determined that street lights, fountains, and Tubewal were not commonly considered parts of a building. Consequently, the management, maintenance, or repair services for these structures fell under the taxable category.

5. Ultimately, the Tribunal found no merit in the appellant's case on the grounds of the services provided for Tubewal, street lights, and fountains. They upheld the impugned order, dismissing the appellant's appeal based on the conclusion that the services did not qualify for exemption as government buildings.