Order Date – 24 July 2023

Parties: Ample Construction Company Vs Commissioner of Central Excise & ST, RAJKOT

Facts – 

• The Appellant, Ample Construction Company, provided service of construction of residential complex for Gujarat State Police Housing Corporation without discharging service tax.

Issue – 

• Whether the appellant is liable to service tax on the service of construction of residential complex for Gujarat State Police Housing Corporation?

Order – 

• The Tribunal observed that the issue is no longer res-integra as in the various judgments which bear identical facts, this Tribunal has held that the construction of residential complex provided by the contractor to State Police Housing Corporation is not liable to service tax.
• The Tribunal relied on the decision of this Tribunal in the case of Riddhi Siddhi Construction wherein it was held that “most of the repair, renovation, construction work undertaken by the appellant is primarily for Vadodara Municipal Seva Sadan, M.S. University and for police department. We feel that these organisations are in no way concerned with any Commercial of Industrial activity and therefore, the activity undertaken by the appellant will fall under the exclusion clause of the definition for the Commercial or Industrial Construction Service.”
• From the above decision it can be seen that construction of residential complex for State Police Housing Corporation was held to be non taxable. Considering the above decision, demand in the present case is not sustainable. Accordingly, the impugned order is set-aside and the appeal is allowed.