2013 (8) TMI 293 - AT - Service Tax

Construction of Residential Complexes u/s 65 (91a) Duty Demand Waiver of Pre-deposit - Assesse constructed residential complexes for a State Authority for constructing residential quarters for allotment to its police personnel Held that - Houses constructed were owned by the State Government and were allotted to police personnel by the Government - The Police Housing Corporation appears to have worked as an extended arm of the Government the houses that were constructed should be considered to be in the personal use of the State Government Following the Judgement of S. Kadirvel Vs CST Tiruchirapalli 2013 (8) TMI 262 - CESTAT CHENNAI - Waiver of Pre-deposit and stay allowed to the assesse Decided in favor of assesse.

Summary

Issues:
Three stay petitions in three appeals regarding service tax on construction activity for residential complexes for Tamil Nadu Police Housing Corporation.

Analysis:
The judgment involves three separate appeals concerning the construction of residential complexes for the Tamil Nadu Police Housing Corporation without paying service tax. The Revenue claimed that the construction activity was taxable under the Finance Act 1994. After adjudication and the first appeal, the amounts confirmed against the three different applicants are detailed in the table provided in the judgment. The applicants, aggrieved by the Commissioner (Appeals) order, filed appeals along with applications for waiver of pre-deposit of dues for admission of appeals.

The Advocate for the applicants argued that the residential complexes were constructed for the personal use of Tamil Nadu Government officials, falling under the exclusion clause of the Finance Act. The Advocate cited previous stay orders in similar matters where unconditional waiver was granted. On the other hand, the Revenue argued that the construction was not for the Tamil Nadu Government but for the Tamil Nadu Police Housing Corporation Ltd., intended for the residential use of Tamil Nadu Government personnel.

The Tribunal considered both submissions, including previous stay orders in similar matters. Referring to a specific stay order in a different case, the Tribunal found a prima facie case in favor of the appellant, stating that the houses constructed by the Police Housing Corporation were owned by the State Government and allotted to police personnel. The Tribunal granted waiver and stay against the impugned demand and connected appeals. Following this precedent, the Tribunal granted waiver of pre-deposit of dues arising from the impugned orders for admission of appeal, with a stay on the collection of such dues during the pendency of appeals. The judgment was dictated and pronounced in open court by the Tribunal.