2013 (7) TMI 298 - AT - Service Tax

Waiver of pre-deposit of service tax commercial or industrial service - Held that - As per the definition, construction of new building or civil structure or part thereof is covered under the scope of taxable service - the applicant had only undertaken interior renovation of the part of the building - Renovation as a part thereof is not mentioned in the definition under section 90(d) - pre-deposit of the dues waived recovery stayed - stay petition allowed.

Summary

Issues:
Waiver of pre-deposit of service tax, interpretation of commercial or industrial construction service definition.

Analysis:
The applicant filed for waiver of pre-deposit of service tax of Rs. 1,61,48,983/-, interest, and penalties related to interior work undertaken at the 9th floor of a building in Mumbai, categorized under commercial or industrial construction service. The applicant argued that as per the work order, only interior renovation of a part of the building was undertaken, not new construction, and thus should not be considered under commercial or industrial construction service. The Revenue, however, contended that the definition includes repair, alteration, renovation, or restoration of a building or part thereof, making the demand valid.

The key issue was whether the applicant provided commercial or industrial construction service. The definition of commercial and industrial construction service includes construction of new buildings, civil structures, or parts thereof, and repair, alteration, renovation, or restoration in relation to buildings or civil structures primarily used for commerce or industry. The Tribunal noted that the definition did not mention 'part thereof' in the context of repair, alteration, renovation, or restoration. Based on this, the Tribunal found merit in the applicant's argument and waived the pre-deposit of dues, staying the recovery during the appeal process.

Given the substantial revenue involved, the appeal was directed for regular hearing. The Tribunal's decision rested on the interpretation of the definition of commercial and industrial construction service, emphasizing the absence of 'part thereof' in the relevant clause. This case highlights the importance of precise legal interpretation in tax matters, where nuances in definitions can significantly impact liability and obligations.