2018 (9) TMI 1272 - AT - Service Tax

Commercial or Industrial Construction Services - construction of Toll Plaza - period October, 2007 to October, 2009 - Extended period of limitation - Held that - The issue of construction of Toll Plaza is a taxable service or not came before this Tribunal in the case of Jagdish Prasad Agarwal vs. CCE, Jaipur-I 2017 (5) TMI 702 - CESTAT NEW DELHI , where it was held that Commercial or Industrial Construction service provided in respect of roads are specifically excluded from the purview of levy of service tax in terms of clause (25b) of Section 65 ibid. Demand of service tax under the construction of Toll Plaza and Lanes under the category of Commercial or Industrial Construction Services is not sustainable - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Appeal against demand confirmed for construction of Toll Plaza under 'Commercial or Industrial Construction Services' for the period October 2007 to October 2009 by invoking extended period of limitation.

Analysis:

1. Taxability of Construction of Toll Plaza:
The appellant appealed against the demand confirmed for the construction of Toll Plaza under the category of 'Commercial or Industrial Construction Services' for the period between October 2007 to October 2009. The issue of whether the construction of Toll Plaza qualifies as a taxable service was deliberated. Reference was made to a previous case, Jagdish Prasad Agarwal vs. CCE, Jaipur-I, where it was observed that services provided in respect of maintenance and repair of roads were exempt from service tax. The Tribunal in the previous case held that construction of Toll Plaza did not fall under 'Commercial or Industrial Construction Services' as it was related to the construction of roads. The phrase 'in respect of roads' was interpreted broadly to mean 'for the provision of'. Consequently, the construction of Toll Plaza and Lanes was deemed not to be taxable services. Therefore, the impugned orders demanding service tax for the construction of Toll Plaza and Lanes under the category of 'Commercial or Industrial Construction Services' were deemed unsustainable.

2. Decision and Relief Granted:
Based on the analysis and findings, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant. Any consequential relief due to the appellant was also granted. The judgment concluded with the decision being dictated and pronounced in court.

In summary, the judgment by the Appellate Tribunal CESTAT ALLAHABAD dealt with the taxability of construction of Toll Plaza under 'Commercial or Industrial Construction Services'. The Tribunal referred to a previous case to establish that such construction did not qualify as a taxable service as it was related to the construction of roads. Consequently, the demand for service tax for the construction of Toll Plaza and Lanes was deemed unsustainable, leading to the appeal being allowed in favor of the appellant with consequential relief granted.