2018 (2) TMI 647 - AT - Service Tax

Construction of Residential and Commercial Complexes - Composite Work Contract service - Held that - In the case of B.L. Mehta Construction Pvt. Limited Vs. CCE, Chandigarh 2017 (8) TMI 520 - CESTAT CHANDIGARH , identical matter came before this Tribunal, where Tribunal has already held that as the construction of said flats is for personal use, therefore, no demand of service tax is not sustainable - demand of service tax is not sustainable against the appellant - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against demand of service tax, interest, and penalties for construction of Residential and Commercial Complexes under Works Contract service.

Analysis:
The appellant appealed against an order confirming the demand of service tax, interest, and penalties for providing services to the Chandigarh Housing Board for constructing Residential and Commercial Complexes under a composite works contract. The show cause notice was issued based on an enquiry, and the demand of service tax was confirmed along with penalties under Sections 77 and 78 of the Act. The appellant contended that the construction was for personal use, and therefore, no service tax liability arose. The Tribunal referred to a previous case where it was held that the construction was for personal use, and hence, no service tax liability existed. Relying on this precedent, the Tribunal set aside the demand of service tax against the appellant, allowing the appeal with consequential relief if any.

Key Points:
- Appellant appealed against demand of service tax, interest, and penalties for construction services.
- Show cause notice issued based on an enquiry regarding construction of Residential and Commercial Complexes.
- Tribunal held that construction was for personal use, hence no service tax liability.
- Precedent case referred to support the decision.
- Demand of service tax set aside, appeal allowed with consequential relief if any.