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2022 (9) TMI 1157 - AT - Service Tax


Issues:
Confirmation of demand of service tax, interest, and penalty - Exemption under Notification No. 25/2012-ST - Construction services provided to Government/State Government authorities - Denial of benefit for road construction in GIDC - Interpretation of Notification No. 25/2012-ST - Claiming benefits under Sr. No. 12(a), 13(a), and 29(h) of Notification No. 25/2012-ST - Lack of evidence and substantiation by the Appellant - Remand to original adjudicating authority for fresh decision.

Analysis:

The appeal in this case was filed against the confirmation of demand of service tax, interest, and penalty by M/s SA Domadia. The Appellant, engaged in providing taxable services to Government/State Government authorities, claimed exemption under Notification No. 25/2012-ST. The dispute arose when the benefit of the said exemption was denied concerning road construction in GIDC, on the grounds that the roads were not for use by the general public, but by individuals related to commerce, industry, and business activities.

The Appellant argued that the services provided within GIDC were meant for commercial, industrial, professional, and business establishments, and thus, should qualify for exemption under Notification No. 25/2012-ST. The Tribunal examined the provisions of Notification No. 25/2012-ST and concluded that the services provided within GIDC did not fall under the exemption categories specified in Sr. No. 12(a) of the notification, as the structures were predominantly meant for promoting industry or commerce.

Furthermore, the Appellant sought benefits under Sr. No. 13(a) and 29(h) of Notification No. 25/2012-ST. The Tribunal acknowledged that services like roads, bridges, and tunnels in GIDC were accessible to the general public, extending the possibility of exemption under Sr. No. 13(a). However, the Tribunal highlighted the lack of evidence and substantiation by the Appellant, especially regarding works done as a sub-contractor to main contractors providing exempted services.

Consequently, the Tribunal allowed the appeal by way of remand, setting aside the impugned order and directing the original adjudicating authority to re-examine each case based on the parameters outlined in the judgment. The decision emphasized the importance of providing clear evidence and details to support claims for exemptions under the relevant notifications. The judgment was pronounced in the open court on 22.09.2022, highlighting the need for a thorough review of the case based on the legal provisions and evidence presented.

 

 

 

 

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