Service Tax Inapplicable to Construction of Residential Complex for JnRUM Works Contract

H K Ramani Vs C.C.E. & S.T.-Surat-II (CESTAT Ahmedabad)

CESTAT Ahmedabad held that the works contract service of construction of residential complex for JawaharLal Nehru Urban Renewal Mission (JnRUM) is not liable to service tax

Facts- The issue involved in the present case is that whether the appellant is liable to pay service tax under the category of Construction of Complex service for the service related to construction of houses under Jawaharlal Nehru National Urban Renewal Mission (JnNURM for short) and for SafaiKamdar to Ahmedabad Municipal Corporation or otherwise.

Conclusion- We find that the works contract service of construction of residential complex for JawaharLal Nehru Urban Renewal Mission (JnRUM) is not liable to service tax being not a commercial in nature. This issue has been considered by this Tribunal in various judgments.

Held that it is settled that construction of residential complex under JnRUM Scheme is not liable to service tax. Accordingly, the demand in the present case is not sustainable.

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