Order Date – 07 February 2023

Parties: F K Enterprise Vs C.C.E. & S.T.-Vadodara-i

Facts – 

• The Appellant, F K Enterprise, are registered with the Service Tax cell under the category of “Works Contract”. The appellant is carrying out services of Repair or Maintenance and Commercial or Industrial Construction Relating to Painting on Walls, Buildings, and Sheds etc.
• It was alleged that since, these activities were carried out on the old building, the same is not covered under works contract service in terms of the definition of “works contract” as per clause ii (b)(c) & (d). Therefore, the appellant is liable to pay the deferential duty.

Issue –

• Whether services of Repair or Maintenance and Commercial or Industrial Construction Relating to Painting on Walls, Buildings, and Sheds are covered under the definition of works contract?

Order –

• The Tribunal held that on reading of the definition of works contract, to cover the appellant’s activity under works contract it is not necessary that the said activity should be carried out only in respect of new building. There is no condition that such as civil structure or part thereof should be new.
• The painting is clearly covered under term finishing service, repair, renovation or similar service. The painting work carried out on a civil structure or part thereof and also of a pipe line or conduit and undisputedly it is for the purpose of commerce or industry, the same is specified under clause (b).
• It was held that the activity of the appellant is squarely covered under the definition of “works contract”. Therefore, the appellant have correctly discharged the Service Tax under the head of works contract.

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