BHAYANA BUILDERS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE dispute in this appeal relates to "commercial or industrial construction service" as a taxable service. The appellant is a civil contractor. Undisputedly, for constructions of commercial or industrial nature, it is paying service tax. The dispute herein is with respect to the construction of the Embassy Complex for Tanzania called Chancery Building including residences for the staff of Tanzania High Commission. It is the admitted position that out of total service tax demand of Rs. 50,50,994/ -, the appellant has paid Rs. 39,85,252/ - before issuance of the show cause notice. The dispute on the point of pre -deposit thus relates to little over Rs. 10 lakhs plus the penalties.

(2.) THE case of the appellant is that the liability of service tax is attracted only in respect of construction of a new building which is "used for" or "occupied with" or "engaged in" "commerce or industry"; and as the embassy building/staff quarters have no nexus with commerce or industry, the service rendered by the appellant for construction of the complex would not attract the definition of "commercial or industrial construction service".

(3.) AFTER considering the submissions of the parties we find that the appellant has already deposited sum of Rs. 39,85,252/ -, and we are of the view that they may not pre -deposit the balance amount of service tax. Accordingly, we allow the stay application, grant full waiver and stay recovery till disposal of the appeal.