Case Law Details
National Building Construction Corporation Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
Since the scope of contract included supply of goods, the same cannot be classified under the above service category of Commercial or Industrial Construction but under ‘Works Contract service’ which classification has not been invoked in the SCN proceedings.
FULL TEXT OF THE CESTAT KOLKATA ORDER
Appeal No. ST-154/2011 has been filed by M/s. Simplex Projects Limited (SPL) against Order-in-Original No. ST/Shillong/02/2011 dated 31.01.2011 passed by the Ld. Commissioner of Central Excise, Shillong, whereby he has confirmed demand of service tax of Rs.84,43,911 along with interest and penalty for the periods 2005-06 and 2008-09. In the same adjudication order, demand of service tax of Rs.25,58,761/- along with interest and penalty have been confirmed against M/s. National Buildings Construction Co. Ltd (NBCC) being Appeal No. ST-126/2011. Since both the Appeals are arising out of the above adjudication order dated 31.01.2011, the same are taken up for disposal by this common order.
2. The facts of the case in brief are that SPL has undertaken construction of accommodation for urban employed youth & women vendors at New Market and Laxmi Market at Imphal, Manipur, in terms of the contracts awarded by NBCC on behalf of the Ministry of Urban Development & Poverty Alleviation, Govt. of India. The fund required for the said construction was released to NBCC by the Govt. out of non-lapsable central pool of resources for the development of North-Eastern States. The main contract was awarded to NBCC, which is the nodal implementing agency, which in turn has sub-contracted the entire work on back-to-back basis by retaining 10% of the total contract value.
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