9911796707
TMI Blog2023 (9) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... ered to HUDCO - HELD THAT:- The Appellant has constructed Office building for HUDCO at D.J. Block, Salt Lake, for their own use. During the relevant period, service tax was chargeable on construction services when the building is used for commercial and industrial purpose - HUDCO is a Government of India Enterprise incorporated with an intent to undertake housing and urban development of the country. HUDCO undertakes its activities for the upliftment of society and for urban development of the country. Hence the office building constructed for HUDCO cannot be considered for industrial or commercial purpose. As the building is used by HUDCO for official purpose it cannot be equated with a building for commercial, trade and industry. Accordingly, the demand of service tax of Rs. 14,86,562/-confirmed in the impugned order is not sustainable. Levy of service tax on hiring of machinery - HELD THAT:- The Appellant has claimed that the machinery was supplied with rights of possession and effective control thereof and hence it would not fall under the taxable service of Supply of tangible goods. However, it is observed that the claim of Appellant was not supported by any documentary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- was imposed under Section 77 of the Act, on the Appellant. Aggrieved against the impugned order, the Appellant has filed the present appeal. 2. In their grounds of appeal, the Appellant stated that were engaged in the business of the following services during FY 2005-06, 2006-07-08,2008-09- 10: i) Construction of roads ii) Management, Maintenance Repair of Roads iii) Construction of Building for HUDCO iv) Supply of Machinery v) Renting of house property vi) Construction of CRPF Quarters vii)Construction of BSF Quarters viii) Construction of Hostel Building for IIHM ix) Widening Strengthening of Road x) Construction of Indo-Bangladesh Border Fencing 3. They did not obtain registration under the service tax regime, under the bonafide belief that the services provided during the relevant period, as mentioned above, were exempted from service tax. In the impugned order, the service tax demand has been confirmed only on the following services provided by them for the period FY 2005-06, 2006-07, 2007-08 and 2009-10: i. Management, Maintenance Repair or Roads- The services include resurfacing, renovation, stre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effective control thereof, it would not fall under the taxable service of Supply of tangible goods. 8. Regarding service tax demand of Rs.39,601/- under renting of immovable property service, they stated that the property does not belong to the firm. It was jointly owned by him and his brother. The Appellant received rent towards his share of the rent on the property. As the rent received was well within the exemption limit, no service tax was payable. 9. In view of the above submissions, they submitted that the demands confirmed in the impugned order is not sustainable. 10. The Ld.A.R. reiterated the findings in the impugned order. 11. Heard both sides and perused the appeal records. 12. We observe that the impugned order has confirmed service tax of Rs.2,36,31,139/- including Education Cess, along with interest and Penalty. The demands confirmed can be categorized under the following headings: (i) Service tax on Maintenance and repair of roads Rs. .2,17,05,694/- (ii) Service tax on construction service rendered to HUDCO - Rs. 14,86,562/- (iii) Service tax on hiring of machinery Rs. 3,99,282/- (iv) Service tax on renting of immovable property Rs.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, In relation to building or civil structure; or (d) Repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, Which is- (i) Used, or to be used, primarily for; or (ii) Occupied, or to be occupied, primarily with; or (iii) Engaged, or to be engaged, primarily in, commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports railways, transport terminals, bridges tunnels and dams 17. The construction of office building for HUDCO was done based on the tender issued to the Appellant by the Executive Engineer, Kolkata Central Division No-VIII, CPWD. The Tender was signed on behalf of the President of India. HUDCO is a Government of India Enterprise incorporated with an intent to undertake housing and urban development of the country. HUDCO undertakes its activities for the upliftment of society and for urban development of the country. Hence the office building constructed for HUDCO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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