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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, BANGALORE
P.G. CHACKO, MATHEW JOHN, JJ.
Sri Surya Rama Constructions -Appellant
Versus
Commissioner of Central Excise, Customs & Service Tax, Visakhapatnam -Respondent
Stay Order No. 1878 of 2012 Misc. Order No. 800 of 2012 Application Nos. ST/Stay/268 of 2012 and ST/COD/29/2012 Appeal No. ST/445 of 2012
Decided On : 27-12-2012
V. Govinda Raju,S. Teli
P.G. Chacko, Judicial Member - There is a delay of 20 days in the filing of the appeal, which has been satisfactorily explained. The ODD application stands allowed.
2. Another application filed by the appellant seeks waiver and stay in respect of the adjudged dues which include an amount of Rs. 16,38,696 demanded under the head 'construction of residential complexes service' for the period from 1-4-2006 to 31-3-2009. The following is a breakup of the above demand of service tax:
| Sl. No. | Service recipients | Nature of work | S.T. liability (Rs.) | S.T. liability (cum-tax)' (Rs.) |
| 1. | AP State Housing Corporation, Kakinada | Construction of residential complex under Rajiv Gruha Scheme | 7,38,052 | 6,57,351 |
| 2. | Executive Engineer, APHMHIDC | Management, maintenance & repairs | 6,37,768 | 5,68,061 |
| 3. | Principal, JNTU College of Engg., Kakinada (MMR) | Management, maintenance & repairs | 2,62,876 | 2,34,047 |
| Total | 16,38,696 | 14,59,459 |
3. On a perusal of the records and hearing both sides, we find that the first item of demand pertains to residential complexes constructed by the appellant for the Government of Andhra Pradesh. Each building consists of 12 dwelling units. There are several such buildings constructed by the appellant in the same place for the Government. The question arises as to whether service tax under the above head can be levied at all and collected (sic) from the appellant inasmuch as each building which was constructed with self-contained facilities consists of only 12 dwelling units. On a similar issue, waiver and stay were granted by this Bench in the case of another assessee vide Stay Order No. 1089/2012 dated 26-6-2012 in Appeal No. ST/1806/2011 Sai Teia Constructions v. CCE.
4. The second and third items of demand are under the head "management, maintenance or repair service". It is submitted by the consultant for the appellant that these demands pertain to maintenance/repairs of a Government hospital and a Government college. On this basis, he claims the benefit of section 98 of the Finance Act, 1994. Sub-section (1) of section 98 reads thus :—
"Section 98 special provision for exemption in certain cases relating to management, etc., of non-commercial Government building.—(1) Notwithstanding anything contained in Section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of non-commercial Government buildings, during the period on and from the 16th day of June, 2005 till the date on which Section 66B comes into force."
It is not in dispute that the period of demand in the instant case is comprised in the above period for which management, maintenance or repair of non-commercial Government buildings were exempted from levy of service tax.
5. On the above basis, after considering the submissions of both sides, we grant waiver and stay as prayed for.
