GYARSILAL MOHANLAL Vs. COMMISSIONER OF C. EX. & S.T., JAIPUR
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Commissioner Of C. Ex. And S.T., Jaipur
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G. Raghuram, J. (President) -
(1.)PURSUANT to two show cause notices dated 1 -7 -2011 and 12 -10 -2011, the petitioner was assessed to service tax of Rs. 1,74,04,424/ - for having provided construction of complex service by construction of independent residential units for Rajasthan Housing Board and construction of the corporate office of Ajmer Vidyut Vitaran Nigam Limited. Neither the show cause notice nor the common impugned order (in the two appeals) segregates the consideration received by the appellant on these two distinct taxable services. In so far as construction of independent residential units for Rajasthan Housing Board is concerned, the petitioner asserts that the demand is unsustainable in view of decision in Macro Marvel Projects Limited v. CST, Chennai - : 2008 (12) S.T.R. 603 (Tri. Chennai). In so far as the assessed liability in relation to construction of corporate office for Ajmer Vidyut Vitaran Nigam Limited is concerned ld. Counsel place reliance on Notification No. dated 20 -7 -2010 to contend that taxable services in relation to transmission of electricity, are exempted from tax. Prima facie, construction of a corporate office for Ajmer Vidyut Vitaran Nigam Limited would not amount to rendition of a taxable service in relation to transmission of electricity, even though construction of the corporate office is in respect of a transmission or distribution agency.
(2.)ALTERNATIVELY , ld. Counsel would contend that since admittedly the work of constructing the corporate office is by way of a works contract, comprising both supply of goods and rendition of associated services, the petitioner is entitled to the exclusion of the value of the goods component, which on a broad view comes to around 67% of the total value of the contract, in view of exemption Notification No. , dated 10 -9 -2004. This contention has merit.
According to ld. Counsel the appellant's liability to Service Tax on the consideration received for construction of the corporate office for Ajmer Vidyut Vitaran Nigam Limited, after availing the benefit of 67% rebate under Notification No. 12/2004 -S.T. would come to about Rs. 18 lakhs. We have no other measure of assessing the extent of this liability since neither the show cause notice nor the impugned order segregate the quantum of consideration received by the appellant from the activity of construction of residential units and construction of the corporate office.
(3.)IN the above circumstances, we direct the appellant to pre -deposit Rs. 18 lakhs plus the proportionate interest thereon within six weeks from today. On such remittance there shall be stay of all further proceedings for recovery of the assessed liability, during the pendency of the appeal. Stay applications are accordingly disposed of. Matter to come up for reporting compliance on 18 -8 -2015.
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