9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 471 - AT - Service TaxWaiver of pre-deposit - Commercial and Industrial Construction Services - case of applicant is that as the services which have been provided by the applicant to Balaji Medical and Diagnostic Research Centre (BMDRC) is for the construction of charitable hospital, therefore, in the light of the decision of this Tribunal in the case of Mankeshwar Enterprises Vs. CCE, Pune 2014 (1) TMI 91 - CESTAT MUMBAI , the applicant is entitled for waiver of pre-deposit at this stage - Held that - the activity undertaken by the applicant falls under the category of works contract, therefore, demand under the category of Commercial and Industrial Construction Services is not sustainable - the applicant has made out a case for complete waiver of Service Tax, interest and penalties - stay granted.
Issues:
Demand of ?87,09,749/- confirmed under Commercial and Industrial Construction Services for construction of a hospital. Classification of the services provided under a composite contract. Entitlement for waiver of pre-deposit based on the nature of services and applicable legal precedents. Analysis: The judgment by the Appellate Tribunal CESTAT CHANDIGARH addressed the demand of ?87,09,749/- imposed on the applicant for construction services provided for a hospital. The appellant argued that the services rendered under a composite contract, involving the supply of material along with services, should be classified as a works contract. Citing the decision in the case of CCE & Cus., Kerala Vs. Larsen & Toubro Ltd., the appellant contended that the demand under Commercial and Industrial Construction Services was not sustainable. Additionally, it was argued that since the services were for the construction of a charitable hospital, a waiver of pre-deposit should be granted, referring to the decision in the case of Mankeshwar Enterprises Vs. CCE, Pune and Excel Engineering Vs. CCE, Meerut-II. The Ld. AR representing the respondent reiterated the findings in the impugned order, opposing the appellant's contentions. After hearing both parties and considering the submissions, the Tribunal examined the issue of classification of services provided under the composite contract. Referring to the case of Excel Engineering Vs. CCE, Meerut-II, the Tribunal observed that the service rendered by the appellant should be classified as 'Works contract Service' as defined under Section 65 (105) (zzzza). Consequently, the Tribunal held that the demand under Commercial and Industrial Construction Services was not sustainable, as the activity undertaken by the applicant was deemed to fall under the category of works contract. Based on the above observations and analysis, the Tribunal concluded that the applicant had made a case for a complete waiver of Service Tax, interest, and penalties. Therefore, the Tribunal waived the requirement of pre-deposit for the entire amount of Service Tax, interest, and penalties, staying the recovery thereof during the pendency of the appeal. The judgment was dictated and pronounced in open court by the Tribunal members, Mr. Ashok Jindal and Mr. Devender Singh.
|
