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TMI Blog2022 (5) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... is rather mentioned by Commissioner (Appeals) in the order under challenge that the Bazaar Shulk / the nominal fee was lifted w.e.f. 01.04.2018. The issue of collection of nominal fee with respect to the stalls for facilitating the farmers is not an activity of commerce. It is held that Commissioner (Appeals) though had been thoroughly meticulous about the entire demand proposed in the show cause notice but has been wrong while considering the construction of Hut Bazaar as an activity of commerce and industry. Appeal allowed. - Service Tax Appeal No. 51057 of 2021 [SM] - FINAL ORDER No. 50466/2022 - Dated:- 19-5-2022 - DR. RACHNA GUPTA, MEMBER (JUDICIAL) Mr. Bimal Jain, Advocate for the Appellant Ms. Tamanna Alam, Authorised Representative for the Respondent ORDER The appellant herein is engaged in providing the construction services to various Departments/Local Authorities. Based upon an information received from Income Tax Department that a query was raised by the Revenue Department vide letter dated 09.10.2018. Pursuant to the response thereof the department formed an opinion that the appellant has received an amount of Rs.5,20,01,460/- during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. and for sunday market of Nagar Palika Parishad, Dhamtari. Commissioner (Appeals) while partly allowing the appeal has held that the construction of quarters and houses to CG Housing Corporation Ltd. also to be a welfare activity with no element of commerce and Industry. Hence, the demand to that extent has also been dropped by Commissioner (Appeals) (amounting to Rs.22,17,534/-). Learned Counsel has impressed upon that the minuscule demand as against the huge proposal is being wrongly confirmed by Commissioner (Appeals), the said demand is also prayed to be set aside on the same principle as has been applied for the construction services given to CG Police Housing Corporation Ltd. Finally, impressing upon that the above facts and submissions are sufficient to reflect that the controversy to be adjudicated by this Bench is only to the effect as to whether the services provided for construction of Hut Bazaar has any element of commerce and industry and there is no other issue of taxability as has been mentioned by learned DR. The order under challenge is accordingly prayed to be set aside and appeal is prayed to be allowed. 4. To rebut these submissions learned DR has reite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess or profession; (b) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); (c) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; (d) canal, dam or other irrigation works; (e) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal; 13. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, - (a) a road, bridge, tunnel, or terminal for road transportation for use by general public; (b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana; (c) a building owned by an entity registered under section 12 AA of the Income tax Act, 1961 (43 of 1961) and meant predominantly for religious use by general public; (d) a pollution control or effluent treatment plant, exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -commercial nature for the facilitation of the farmers. In this regard, ld. Counsel has also pointed out that Circular No. 80/10/2004-S.T., dated 17.-09-2004 Construction services (commercial and industrial buildings or civil structures) 13.2. The leviability of service tax would depend primarily upon whether the building or civil structure is used, or to be used for commerce or industry. The information about this has to be gathered from the approved plan of the building or civil construction. Such constructions which are for the use of organizations or institutions being established solely for educational, religious, charitable, health, sanitation or philanthropic purposes and not for the purposes of profit are not taxable, being non-commercial in nature. Generally, Government buildings or civil constructions are used for residential, office purposes or for providing civic amenities. Thus, normally government constructions would not be taxable. However, if such constructions are for commercial purposes like local government bodies getting shops constructed for letting them out, such activity would be commercial and builders would be subjected to service tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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