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TMI Blog2017 (12) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings. In the present case, proceeding was continued, resulting in the impugned order. To that extent closure in adjudication proceeding is not contemplated in the said Section - also, there is no merit in the appeal by the Revenue for imposition of penalty under Section 76 and 78. Appeal dismissed - decided against Revenue. - Service Tax Appeal No.ST/59686/2013-CU [DB] - FINAL ORDER NO. 58138/2017 - Dated:- 21-11-2017 - Mr. S.K. Mohanty, Member (Judicial) and Mr. B.Ravichandran, Member (Technical) Present for the Appellant : Mr.Sanjay Jain, D.R. Present for the Respondent: Mr.A.K.Batra, Advocate ORDER PER: B.RAVICHANDRAN This appeal by Revenue is filed against impugned order dated 31.03.2013 of Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that as per the annual balance sheet, the school is run on a commercial basis earning profit. As such, the building is not excluded from tax liability being involved in a commercial activity. Regarding non-imposition of penalties, it is submitted that the appellants did not disclose the consideration received for construction of building for CGEWHO, Bhopal. When the original authority held that there is a violation of Section 70 and imposed penalty under Section 77, he could not have arrived at different findings to close the case under Section 73 (3). 5. The ld. Consultant appearing for the respondent submitted that the initial demand was for ₹ 5.25 Crores. The original authority agreed with the respondent for exclusion of v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally earning profit, which is transferred to the capital fund and accordingly, cannot be considered as non-commercial. We note that the nature and use of building being for school education managed by school recognized by the Government, the building is excluded from the tax liability under commercial or industrial construction service. It is very clear that the scope of Section 65 (25 b) is with reference to building or civil structure which is used or to be used primarily for commerce or industry or work intended for commerce or industry. In the present case, the building is primarily used for education and not for commerce or industry. Accordingly, we are in agreement with the original authority regarding non-tax liability of the said bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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