Case Law Details
Laing-Simplex JV Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata)
The Hon’ble Kolkata High Court in M/s. Laing- Simplex JV v. Commissioner of Central Excise and Service Tax, Ranchi [Service Tax Appeal No. 70693 of 2013 dated October 04, 2023] held that the services provided during the construction of the large sports facility were not subject to service tax. This determination was based on the understanding that the primary purpose of the mega sports complex was not of a commercial nature.
Facts:
M/s. Laing-Simplex JV, (“the Petitioner”), was involved in the construction of a Mega Sports Complex in Ranchi for hosting the 34th National Games. They entered into two agreements with the Executive Engineer, Ranchi, Government of Jharkhand for this project. Notably, the Government had separately appointed a consulting engineer for various project-related services, while the appellant was specifically tasked with construction work.
The Petitioner contested the order (“Impugned order”) passed by the Commissioner of Central Excise and Service Tax, which confirmed a service tax demand along with interest. Furthermore, the Petitioner was also subjected to a penalty equal to the confirmed service tax, imposed under section 78 of the Finance Act, 1994 (“the Finance Act”). Additional penalties under sections 76 and 77 of the Finance Act were also imposed.
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