Case Law Details
Ample Construction Company Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
CESTAT Ahmedabad has passed an order in the case of Ample Construction Company vs. Commissioner of Central Excise & ST, ruling on the issue of service tax liability on the construction of residential complexes for Gujarat State Police Housing Corporation. The tribunal’s decision provides clarity on the applicability of service tax in such scenarios.
The core issue in this case was whether the appellant, Ample Construction Company, is liable to pay service tax on the construction of residential complexes for Gujarat State Police Housing Corporation. The counsel for the appellant contended that several previous judgments by CESTAT have held that construction services provided to the state police housing corporation are not subject to service tax. They cited relevant cases to support their argument.
On the other hand, the Revenue, represented by the Superintendent, argued for the validity of the impugned order, stating that the service tax liability should be upheld.
In its analysis, CESTAT Ahmedabad referred to previous decisions by the tribunal that had ruled on identical facts and circumstances. They found that construction services provided to establishments or organizations of non-commercial or non-industrial nature fall under the exclusion clause of the definition of “Commercial or Industrial Construction Service.” As a result, they held that the appellant is not liable to pay any service tax on the construction activity.
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