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TMI Blog2010 (11) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... plex service, the other aspects need not be considered - order cannot be sustained and accordingly the same is set-aside - Appeal is allowed - ST/456/2009 - A/1882/2010-WZB/AHD - Dated:- 26-11-2010 - Ms. Archana Wadhwa, Shri B.S.V. Murthy, JJ. REPRESENTED BY : Shri Devan Parikh, Advocate, for the Appellant. Shri R.S. Sangia, SDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. M/s. Khurana Engineering Limited is engaged in providing construction services. A tender was floated by Central Public Works Department (CPWD) for construction of 80 residential quarters for Income Tax department and the appellant executed the contract between the period from16-6-2005to30-7-2007. Service tax of Rs. 47,57,363/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 332/16/2010-TRU., dated24-5-2010, in support of this contention. On the other hand, learned DR submits that it is not correct to say that service has been provided to Govt. of India directly. He submits that the land is owned by Income Tax department and Income Tax department has requested the CPWD to construct the quarters for them and funds have been made available to CPWD by Ministry of Finance for this purpose. CPWD in reality has acted as a bridge between Income tax department and the contractor and after the residential complex is constructed, the same was handed over by CPWD to Income tax department and therefore, in terms of the clarification issued by the Board also, the appellant would be liable to pay service tax. He drew our at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at he has not got any clarification from the department as to whether there is any evidence to show that CPWD and Income Tax departments are separate entities and have to be treated as separate entities. It is well known that various departments of Govt., ofIndiaact on behalf of the President of India and therefore, it cannot be said that CPWD can be equated with NBCC which is a Public Sector under taking. It is also well settled that Public Sector undertakings are not considered as Govt., departments and also cannot be considered as STATE . Further, learned DR also could not show whether there was any agreement between Income tax department and CPWD for the purpose of construction of residential complex. Invariably when two parties are in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person. Explanation - For the removal of doubts, it is hereby declared that for the purposes of this clause (a) personal use includes permitting the complex for use as residence by another person on rent or without consideration; (b) residential unit means a single house or a single apartment intended for use as a place of residence. ] We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of liability of any tax, the service receiver is liable to pay. In these circumstances, the appellants had no reason to resort to suppression or mis-declaration of the facts to avoid payment of service tax since if the service tax was liable, as per the contract, CPWD was liable to pay service tax. Under these circumstances, invocation of extended time limit cannot be justified in this case. Therefore, penalties imposed under various sections of Finance Act, 1994 also cannot be upheld. 4. Another alternative submission made by the learned advocate was that the contract between the appellant and the CPWD was a works contract and VAT has been paid treating the same as works contract and therefore, no service tax was liable to be paid f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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