9911796707
TMI Blog2025 (4) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... Lucknow to the extent demand of service tax of Rs.27,91,386/- alongwith equivalent penalty under Section 78 and interest. 2. Brief facts of the case are that during the period 2015-16, 2016-17 & 2017-18 (upto June‟2017), the Appellant provided/ executed works contract for Governmental bodies (Rajya Krishi Utpadan Mandi Parishad) and also to educational institutions and hospital societies. Since the Appellant was registered under the U.P. VAT Act, 2008, hence the Appellant discharged VAT liability on the "Transfer of Property in Goods" involved in the execution of the Works Contract. It is the claim of the Appellant that the services, if any, provided, were exempted under clause 13 of Notification No.25/2012-ST dated 20.06.2012, as am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 ITA, 1961, the construction of buildings owned by entities registered under Section 12AA of the ITA, 1961 were exempted under clause 13 of Notification No.25/2012-ST dated 20.06.2012, as amended. The Appellant also claimed benefit of abatement under Notification No.26/2012-ST dated 20.06.2012 and also that the tax, if any, payable, was required to be paid on reverse charge mechanism basis. 6. The SCN was adjudicated vide Order-in-Original No.27/ADC/LKO/2022-23 dated 08.06.2022 confirming the demands proposed in the SCN, rejecting the claim of exemption under Notification No.25/2012-ST dated 20.06.2012 and also denying the claim of abatement on the ground that the contract in question was not a works contract. 7. Aggrieved with the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty and interest, the Appellant has preferred the present appeal. 10. Assailing the impugned order, ld. counsel for the Appellant submitted that the impugned order fails to appreciate that contracts were executed with entities registered under Section 12AA of the ITA, 1961 for construction of buildings, such contracts were work contracts as held in the impugned order, the buildings constructed for such entities were meant predominantly for religious use by general public and therefore the Appellant is entitled for benefit of clause 13 of Notification No.25/2012-ST dated 20.06.2012, as amended. The ld. counsel also submitted that alternatively, the services being works contract services, the Appellant has paid VAT/sales tax on the entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by entities registered under Section 12AA of the ITA, 1961. The dispute pertains to the use for which the buildings were put to. The case of the revenue is that since the entities were schools and hospitals, hence the buildings were not meant predominantly for religious use by general public. 16. We find that the issue is no more res-integra as this Tribunal by Final Order No.51031/2022 dated 31.10.2022 passed in Service Tax Appeal No.50770 of 2022-SM [M/s S. Kumar Builders v. Commissioner of Central Goods & Service Tax & Central Excise] has considered the identical issue and after considering Section(s) 12AA, 12A and the definition of expression „charitable purpose‟ under Section 2(15) of the ITA, 1961 has held educational a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid or payable on the actual value of property in goods transferred in the execution of the works contract, then, such value adopted for the purposes of payment of value added tax or sales tax, shall be taken as the value of property in goods transferred in the execution of the said works contract for determination of the value of service portion in the execution of works contract under this clause." 18. The aforesaid provision clearly shows that the value of service portion in the execution of works contract shall be determined in the manner provided thereunder. Clause (i) provides that value of service portion shall be equivalent to the gross amount charged for the contract less the value of property in goods transferred in the executio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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