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TMI Blog2025 (3) TMI 1446X X X X Extracts X X X X X X X X Extracts X X X X ..... rks contract executed by the Respondent for supply, installation, testing and commissioning of HVAC etc, is ancillary to the Building contract. Consequently, the Tribunal held that the Building being a construction contract, the same is covered by Part "B" of the Notification dated 30th February 2006 and levy of composition rate of tax on the contract would be as per Section 42 (3) (a) and the rate applicable would be 5%. According to the Revenue, the impugned order gives rise to five questions of law as more particularly stated in paragraph 8 of the memo of Appeal. 2. Before we decide if any substantial question of law arises from the impugned order, it would be appropriate to set out some brief facts. 3. The Respondent herein is engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tality Ltd was a "Construction Contract". The Assessing Authority, accordingly, passed an order dated 30th September 2015 determining the tax liability @ 8% and also levied interest and penalty and issued a demand notice to pay a sum of Rs. 95,65,059/- towards tax, interest and penalty. 6. Being aggrieved by the Assessment Order dated 30th September 2015 the Respondent preferred an Appeal before the First Appellate Authority. The First Appellate Authority also by its order dated 19th September 2019 dismissed the Appeal filed by the Respondent. In the order of the First Appellate Authority it was observed that the Respondent had failed to remain present for final hearing in spite of issuance of notices and also failed to produce any documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r hearing the Respondent - Assessee as well as the the Appellant before us (the Revenue), allowed the Respondent's Appeal partly. Vide the impugned order, the MSTT held that the works contract executed by the Respondent for supply, installation, testing and commissioning of HVAC and electrical work was ancillary to the Building contract. Building being a construction contract, the works contract entered into by the Respondent with M/s. Sahara Hospitality Ltd was covered by Part "B" of the Notification dated 30th November 2006 and levy of composition rate of tax on such contract would be as per Section 42 (3) (a), and the rate applicable would @ 5%. The Tribunal also deducted the levy of service tax quantum of Rs. 72,25,567/- and penalty und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent with M/s. Sahara Hospitality Ltd was squarely covered under the Notification dated 30th November 2006. 10. We find that if one was to accept the facts as are mentioned in the impugned order as correct, and which are not really disputed before us, then the present Appeal does not give rise to any substantial question of law. We say this because if the facts as narrated by the Tribunal are accepted, then the contract entered into by the Respondent with the M/s. Sahara Hospitality Ltd would squarely be covered by the Notification dated 30th November 2006. For the sake of convenience the said Notification is reproduced hereunder:- "Notification dated the 30th November 2006 NOTIFICATION THE MAHARASHTRA VALUE ADDED TAX ACT, 2002. No V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contracts, would also be covered. In other words, if the works contract was incidental or ancillary to the Building contract, then the same would be covered by this Notification. 12. As mentioned earlier, the Tribunal, being the last fact finding authority, has come to the conclusion that the work carried out by the Respondent was going on hand in hand with the civil work of M/s. Sahara Hospitality Ltd and completion of civil work was dependent on the completion of the air conditioning work. Once this is the case, we find that the order of the MSTT in so far as it relates to applying the Notification dated 30th November 2006 to the works contract executed by the Respondent with M/s. Sahara Hospitality Ltd does not give rise to any substant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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