2015 (5) TMI 410 - AT - Service Tax

Waiver of pre deposit - Commercial or Industrial Construction service - whether the construction of the various educational institutions would be treated as commerce or industry - held that - Since in this mater the Bench has already granted waiver of pre-deposit of dues for assessees similarly placed, we grant waiver of pre-deposit of dues arising from the impugned order for admission of appeal in this case also - Decision in the case of Chettinadu Constructions 2014 (4) TMI 687 - CESTAT CHENNAI followed - Stay granted.

Summary

Issues:
1. Demand of service tax under Works Contract Service category for the period 01.04.2007 to 31.03.2012.
2. Interpretation of Works Contract Service definition under Section 65(105)(zzzza).
3. Whether construction of educational institutions qualifies as "commerce or industry" for taxation.
4. Application of Board's Circular No.80/10/2004-ST and subsequent master circular.
5. Pre-deposit waiver and stay on collection of dues during appeal.

Analysis:

1. The applicant, a provider of taxable services, received a show-cause notice demanding service tax under Works Contract Service for a specific period. The Adjudicating authority confirmed the tax demand along with interest and penalty.

2. The main argument raised was regarding the construction of educational institutions and whether it falls under the definition of Works Contract Service. The Adjudicating authority exempted the construction of certain public institutions but upheld the demand for private institutions.

3. The dispute centered around whether the construction of educational institutions qualifies as "commerce or industry." The Tribunal referenced previous cases and granted a stay order on similar matters, emphasizing the distinction between commercial training centers and educational institutions.

4. The learned Authorised Representative highlighted the relevance of Board's Circular No.80/10/2004-ST, which was later superseded by a master circular in 2007. Reference was made to a Supreme Court decision to support the argument.

5. After considering both sides' submissions, the Tribunal examined the definition of Works Contract Service under Section 65(105)(zzzza) and the specific criteria for determining if construction activities fall under taxable categories. A stay on collection of dues was granted, and the appeal was scheduled for a future hearing date with a waiver on pre-deposit of dues until the appeal's disposal. The Registry was directed to handle related appeals accordingly.