SIGN IN SUBSCRIBE

News Update

US Nurse convicted of killing 17 patients - 700 yrs of jail-term awardedGST - Payment of pre-deposit through Form GST DRC-03 instead of the prescribed Form APL-01 - Petitioner attributes it to technical glitches - Respondent is the proper authority to decide the question of fact: HC2nd Session of India-Nigeria Joint Trade Committee held in AbujaGST - Since SCN is bereft of any details and suffers from infirmities that go to the root of the cause, SCN is quashed and set aside: HC1717 candidates to contest elections in phase 4 of Lok Sabha ElectionsGST - Once Appellate Authority comes to the conclusion that SCN was issued by an officer who was not competent; reply was also considered by an incompetent authority and the Competent Authority had not applied its independent mind, Appellate Authority could not have assumed original jurisdiction and proceeded further with the matter: HC7th India-Indonesia Joint Defence Cooperation Committee meeting held in New DelhiGST - Neither the Show Cause Notice nor the order spell out the reasons for retrospective cancellation of registration, therefore, the same cannot be sustained: HCMining sector registers record production in FY 2023-24GST - If the proper officer was of the view that the reply is unclear and unsatisfactory, he could have sought further details by providing such opportunity - Having failed to do so, order cannot be sustained - Matter remanded: HCAnother quake of 6.0 magnitude rocks Philippines; No damage reported so farI-T - Initial burden of proof rested on assessee to substantiate his claim of having incurred expenditure on improvement of property: ITATTrade ban: Israel hits back against Turkey with counter-measuresI-T - Agricultural income can be treated by ITO as undisclosed income in absence of any substantial / corroborative material to prove same: ITATCanada arrests three persons in alleged killing of Sikh separatistI-T - Income from sale of property has to be classified & characterised only in manner of computation as per section 45(2): ITATCus - When there is nothing on record to show that appellant had connived with other three persons to import AA batteries under the guise of declaring goods as Calcium Carbonate, penalty imposed on appellant are set aside: HCCongress fields Rahul Gandhi from Rae Bareli and Kishori Lal Sharma from AmethiGST -Since both the SCNs and orders pertain to same tax period raising identical demand by two different officers of same jurisdiction, proceedings on SCNs are clubbed and shall be re-adjudicated by one proper officer: HCFormer Jharkhand HC Chief Justice, Justice Sanjaya Kumar Mishra appointed as President of GST TribunalSale of building constructed on leasehold land - GST implicationI-T - Interest received u/s 28 of Land Acquisition Act 1894 awarded by Court is capital receipt being integral part of enhanced compensation and is exempt u/s 10(37): ITATGirl students advised by Pak college to keep away from political events
 
ST - Construction of Hostel for Women and Synthetic Track in University is prima facie not 'Commercial construction service': CESTAT

By TIOL News Service

MUMBAI, MAY 22, 2014: THE applicants had undertaken the work allotted by Maharashtra State Electricity Transmission Company Ltd. and M/s. Power Corporation of India Ltd. in respect of construction of foundation walls for sub-station or control rooms, foundation for electricity tower etc.

On this activity, the CCE, Kolhapur has confirmed a service tax demand of more than Rs.1.99 crores.

Before the CESTAT, the applicant submits that this activity is exempted from payment of service tax by the section 11C Notification No. 45/2010-ST dated 20.7.2010. Inasmuch as this Notification exempts from payment of service tax in respect of all taxable services relating to transmission of electricity upto 26.2.2010. Furthermore, in terms of Notification No. 11/2010-S.T. dated 27.2.2010 exemption is granted to service provided to any person for transmission of electricity. The applicant, therefore, submits that the demand of more than Rs.1.99 crores is not sustainable. They also rely on the decision in the case of Shri Ganesh Enterprise vs. CCE & ST - 2014-TIOL-187-CESTAT-BANG.

In the matter of the service tax demand component of Rs.1.36 lakhs, the applicant submitted that the same is in respect of construction of Hostel and Synthetic Track and since it is not a commercial or industrial construction service, it is not sustainable. So also, they have already deposited Rs.18.54 lakhs during investigation.

The Revenue representative submitted that Notification No. 11/2010-S.T. dated 27.2.2010 only exempts the taxable service provided to any person for transmission of electricity and not construction activity undertaken.

The Bench observed that the major portion of the confirmed demand is in respect of the activities such as construction of sub-station, control rooms, foundation walls for sub-station, modification of control room, putting & fixing up aluminium panels at sub-stations etc. and Notification No. 45/2010-ST provides exemption to all taxable services relating to transmission of electricity till 26.2.2010.

In the matter of the demand on the said services for the period after 26.02.2010, it was informed by the applicant that the same came to Rs.11 lakhs approximately and they had already deposited Rs.18.54 lakhs during investigation.

In respect of the demand on the construction of hostel for women and Synthetic Track in the University, the CESTAT observed that prima facie the activity is not commercial.
Holding that the amount already deposited is sufficient for hearing of the appeal, the pre-deposit of the adjudged dues was waived and the recovery stayed.

In passing: As to why the adjudicating authority ignore the s.11C notification issued in the year 2010 is electrifying to say the least.

(See 2014-TIOL-829-CESTAT-MUM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST