VRP Constructions Vs Commissioner of CGST & Central Excise (CESTAT Chennai)
The appellant, engaged in providing Commercial or Industrial Construction Services and Management, Maintenance and Repair Services, challenged an Order-in-Original confirming service tax demands for the period 2005-06 to 2009-10, together with interest and penalties.
Following departmental enquiry, the appellant furnished details of services rendered, payments received, Form 16-A and other documents. Based on these records, the Department alleged that the appellant had failed to obtain service tax registration and discharge service tax on services relating to management, maintenance and repair and commercial or industrial construction.
The adjudicating authority dropped the demand relating to repair and maintenance of Government roads but confirmed:
- Service tax of Rs.3,31,310 on Management, Maintenance and Repair Services provided to commercial entities during 01.07.2005 to 31.03.2009; and
- Service tax of Rs.18,53,351 on Commercial or Industrial Construction Services during the same period.
The disputed construction activities related to buildings at the Police Training Academy/Tamil Nadu Police Housing Corporation (TNPHC) and construction of Common Effluent Treatment Plants (CETPs).
Procedural History
The appellant challenged the Order-in-Original before CESTAT Chennai.
Legal Issues
- Whether construction of buildings for the Police Academy/Tamil Nadu Police Housing Corporation constituted Commercial or Industrial Construction Service.
- Whether repair and maintenance services provided to Police Academy buildings were taxable.
- Whether construction of Common Effluent Treatment Plants (CETPs) was liable to service tax under Commercial or Industrial Construction Service.
- Whether invocation of the extended period and penalties was justified.
Relevant Statutory Provisions
- Sections 65(25b), 65(64), 65(105)(zzq) and 65(105)(zzg) of the Finance Act, 1994.
- Section 98(1) of the Finance Act, 2012.
- Section 78 of the Finance Act, 1994.
- Section 80 of the Finance Act, 1994.
Appellant’s Submissions
