BHAYANA BUILDERS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE appellant are engaged in providing of taxable service of commercial or industrial construction and construction of complex service for which they have taken service tax registration. For discharge of duty liability, they were availing of exemption under notification no. dated 10.09.2004, as amended, applicable to industrial or commercial service and notification no. dated 7.6.2005 applicable to construction of complex service and accordingly were paying service tax after availing 67% abatement from the gross amount charged. However, it was subsequently found that they were also receiving cement and steel free of cost from some of their customers viz. M/s. Laconet Hemant India Ltd., Katara Estates Ltd., M/s. Golcha Buildtech (p) Ltd., M/s. DLF Universal Ltd. and M/s. Ashok Leyland but the value of free supply material was not included in the gross amount charged. It was also found that in respect of a building constructed for M/s. Ashok Leyland Ltd., though it was used for commercial purposes and as such, service provided by the appellant to M/s. Ashok Leyland Ltd. in respect of this construction was commercial or industrial service, no service tax has been paid in respect of the same. It was also found that the appellant had constructed a new building and staff quarters for Tanzania High Commission and had not paid any service tax in respect of the same by availing exemption notification no. dated 2.8.2002 which was available to UNO or International Organizations. According to the department, this exemption was not available and the appellant were liable to pay service tax in respect of the same gross amount charged for this construction.

(2.) HEARD both the sides.

(3.) SHRI Amresh Jain, ld. Departmental Representative defended the impugned order by reiterating the findings of the Commissioner and emphasized that the construction of building for Tanzania High Commission would attract service tax as civil or industrial construction service.