N. Rangasamy & Co. Vs Commissioner of Central Excise (CESTAT Chennai)
The CESTAT Chennai allowed the appeal involving the levy of service tax on construction of residential units for the Tamil Nadu Police during the period 1.4.2006 to 31.3.2009. The department had demanded service tax of Rs. 1,64,198, along with interest and penal-ties, under the category of Construction of Complex Service, and the demand had been confirmed by both the original authority and the Commissioner (Appeals). The Tribunal observed that the issue was no longer res inte-gra, as it had already been decided in favour of the appellants in several earlier decisions, including Bismi Engineering Contractors, Siva Engineering Company, S. Kadirvel, K. Elango Packiaraj, and Sima Engineering Constructions. Relying on the CESTAT Chennai decision dated 30.01.2019 in Bismi Engineering Contrac-tors, the Tribunal held that construction of police quarters falls within the exclusion category and is not liable to service tax, set aside the impugned or-der, and allowed the appeal with consequential benefits.
CESTAT Chennai held that construction of residential quarters for the Tamil Nadu Police is not exigible to service tax, following a series of earlier Tribunal decisions on the same issue. The Tribunal noted that its recent decision in Bismi Engineering Contractors had categorically held that construction of police quarters falls within the exclusion category. Find-ing no new grounds to depart from the settled legal position, it set aside the orders confirming service tax, interest, and penalties under Construction of Complex Service. The appeal was al-lowed, with consequential benefits in accordance with law.
