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TMI Blog2023 (6) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... in the construction of flat for Indian Army and West Bengal Power Development Corporation Limited and these residential complexes are for personal use of Indian Army and WBPDCL. The CBEC has clarified vide its Circular No.332/16/2010-TRU dated 24.05.2010, which holds that if the NBCC, being a party to a direct contract with GOI, engages a sub-contractor for carrying out the whole or part of the construction, then the sub-contractor would be liable to pay service tax as in that case, NBCC would be the service receiver and the construction would not be for their personal use. As it is not in dispute that the residential flats constructed by the assessee, are for personal use of Indian Army and WBPDCL, which are a part of Government of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the respondents are liable to pay service tax under the category of construction of residential complex . Therefore, they are liable to pay service tax. 2.1 Accordingly, the impugned proceedings were initiated and demand of service tax was confirmed along with interest and penalty was also imposed, but a portion of which the assessee has already paid, the penalty was not imposed. 2.2 Against the said order, both sides are in appeals. 3. The contention of the assessee is that vide CBEC Circular No.332/16/2010-TRU dated 24.05.2010, which clarified that in case the Government of India is service recipient and the service provided is directly to the Government of India for its personal use, the service tax is not leviable. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Officers. Further, the residential complexes so built are intended for the personal use of the GOI which includes promoting the use of complex as residence by other persons (i.e. the Government officers or the Ministries). As such the GOI is the service receiver and NBCC is providing services directly to the GOI for its personal use. Therefore, as for the instant arrangement between Ministry of Urban Development and NBCC is concerned, the service tax is not leviable. It may, however, be pointed out that if the NBCC, being a party to a direct contract with GOI, engages a sub-contractor for carrying out the whole or part of the construction, then the sub-contractor would be liable to pay service tax as in that case, NBCC would be the serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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