2019 (2) TMI 690 - AT - Service Tax

Construction of complex service - construction of residential units for Tamil Nadu Police by the appellants - period 1.4.2006 to 31.3.2009 - Held that - In a very recent decision of CESTAT Chennai in the case of Bismi Engineering Contractors & Others Vs CGST & Central Excise, Madurai 2013 (8) TMI 293 - CESTAT CHENNAI involving the very same issue, it has been categorically held that construction of such quarters for police personnel will fall under exclusion category and would not be exigible to service tax - demand do not sustain - appeal allowed - decided in favor of appellant.

Summary

Issues:
Demand of service tax liability on construction of residential units for Tamil Nadu Police during a specific period.

Analysis:
The judgment deals with the issue of demand of service tax liability on the construction of residential units for Tamil Nadu Police by the appellants between April 1, 2006, and March 31, 2009. The original authority confirmed the demand of &8377;1,64,198/- along with interest and imposed penalties under various provisions of law. The Commissioner (Appeals) upheld this order in appeal. The appellants challenged this decision in the present appeal.

The Tribunal noted that similar issues had been settled in favor of the appellants in various previous decisions, such as Bismi Engineering Contractors and Others Vs CCE & ST Madurai and Siva Engineering Company Vs CCE & ST Coimbatore. Additionally, a recent decision of CESTAT Chennai in the case of Bismi Engineering Contractors & Others Vs CGST & Central Excise, Madurai, held that the construction of quarters for police personnel falls under the exclusion category and is not liable to service tax. The Tribunal found no new grounds to deviate from this established legal position.

Based on the precedents and the recent decision, the Tribunal concluded that the construction of residential units for Tamil Nadu Police by the appellants falls under the exclusion category and is not exigible to service tax. Therefore, the impugned order confirming the demand of service tax liability was set aside, and the appeal was allowed with consequential benefits as per law.

In conclusion, the judgment resolved the issue of service tax liability on the construction of residential units for Tamil Nadu Police in favor of the appellants based on established legal principles and precedents, ultimately setting aside the demand and penalties imposed by the lower authorities.