2023 (4) TMI 920 - AT - Service Tax

Levy of service tax - Construction of Residential Complex Service - construction of complex service provided to Surat Municipal Corporation for construction of houses under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and construction of housing for Gujarat State Police Housing Corporation Ltd. - HELD THAT - This identical issue has come up in many cases before this tribunal and this tribunal taking a consistent view that the Construction of Residential Complex under JNNURM Scheme and construction of residential housing for Gujarat State Police Housing Corporation Ltd. is not liable to service tax. Reliance can be placed in the case of M/S GANPATI MEGA BUILDERS (INDIA) PVT. LTD. VERSUS COMMISSIONER, CUSTOMS, CENTRAL EXCISE SERVICE TAX, AGRA 2021 (8) TMI 294 - CESTAT ALLAHABAD where it was held that The various construction works carried out for Mandi Parishad are not liable to service tax and are exempted in view of the Education Guide dated 20 June, 2012 by the Board, read with Circular No.89/7/2006 dated 18 December, 2006, read with the Mega Exemption Notification No.25/2012-ST. This issue is no longer res integra - appeal allowed.

Summary

Issues involved:
The issue in this case revolves around whether the construction of complex service provided to Surat Municipal Corporation for construction of houses under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and construction of housing for Gujarat State Police Housing Corporation Ltd. is liable to service tax under Construction of Residential Complex Service.

Judgment Details:
Upon careful consideration of the submissions made by both parties and perusal of the records, the tribunal noted that the Construction of Residential Complex under JNNURM Scheme and construction of residential housing for Gujarat State Police Housing Corporation Ltd. is not liable to service tax. This conclusion was reached based on consistent views taken in various cases and judgments cited by the parties. The tribunal referred to previous cases where similar issues were deliberated upon and held that the service provided to Gujarat State Police Housing Corporation Limited is not liable to service tax as it is considered a government organization, being 100% owned by the Government of Gujarat under the Ministry of Home Affairs.

Separate Judgment by the Tribunal:
In a separate judgment related to the construction service provided to Gujarat State Police Housing Corporation Limited, it was reiterated that the issue is no longer res integra based on a series of case laws. The tribunal referred to specific judgments and decisions that supported the appellant's case, emphasizing that the construction undertaken for personal use, as in the case of police personnel housing, is excluded from service tax liability. The tribunal set aside the impugned order and allowed the appeal, citing relevant legal precedents and definitions to support their decision.

Conclusion:
In both instances, the tribunal ruled in favor of the appellants, holding that the construction services provided under the specified schemes were not liable to service tax based on established legal principles and precedents. The judgments highlighted the importance of considering the nature of the service recipient and the purpose of the construction in determining the applicability of service tax. The decisions were based on a thorough analysis of relevant case laws and definitions, leading to the dismissal of the service tax liability in these particular cases.