Order Date – 28 June 2023

Parties: Malani Construction Co Vs C.C.E. & S.T.-Rajkot

Facts –

• The Appellant, Malani Construction Co, have provided the services of Construction of residential complex to the Municipal Corporation of Surat under Jawaharlal Nehru National Urban Renewal Mission.

Issue –

• Whether the appellant is liable to pay the service tax under the head of “Construction of Residential Complex”?

Order – 

• The Tribunal observed that in the present case the appellant have provided the services of Construction of residential complex to the Municipal Corporation of Surat under Jawaharlal Nehru National Urban Renewal Mission which is not liable to service tax as decided In the case of Jethanand Arjundas & Sons the Tribunal held that “we find that the activity of constructing houses for slum people under the government schemes is not taxable under Construction of Complex Services/ Works Contract/ CICS as it is intended for personal use. The issue is no longer res integra as squarely covered by Tribunal decision in the case of CCE & ST vs Ganesh Yadav”
• Hence it was held that the service provided to the service recipient namely Surat Municipal Corporation under Jawaharlal Nehru National Urban Renewal Mission are not taxable. The appeal is allowed.